Crypto Market Review, August 26

Memecoins Bitcoin, Ethereum, NFT and almost all types of digital assets are barely moving in the market as the deadlock continues, with most crypto investment tools losing investors almost daily. The same goes for Shiba Inu, which failed to enter the accelerated rally, and XRP, which had an unfortunate attempt to break through.

The Shiba Inu refused at the start

As we previously described, the Shiba Inu will most likely make another attempt to enter the recovery rally, as the correction we saw earlier was not as decisive as we might have expected. The token fell back to the rising price range and has been moving up since.

On August 25, SHIB rose more than 14% to its value at one point, showing a recovery potential that everyone expected. Unfortunately, traders almost immediately pushed the price of the asset down as soon as SHIB reached the psychological threshold of $0.00001500.

Unfortunately, the token’s value fell even more, reaching the local support level ahead of the 50-day moving average. With contradictions between a number of technical indicators and the lack of Shiba Inu data on the chain, it is not clear how the price may act in the foreseeable future, especially with the lack of movement on larger assets such as Ethereum and Bitcoin.

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XRP’s bizarre rally attempt

At 08:00 UTC, XRP’s price suddenly rose by almost 5%. A few hours later, it fell back to the normal price range, which has not been expected by the market in any way. There were also no fundamental or technical reasons that would cause such a rapid and sudden price increase.

The only unusual thing we saw on the network was the number of large transfers going through a number of wallets in a matter of hours. The large transaction volume could have been a reflection of the large buying volume that appeared on the market earlier.

Currently, XRP has returned to the same trading range as it was before the volatility spike, trading around $0.35 with a modest 1.7% price increase in the last 24 hours. In the medium-term perspective, the asset remains in a local uptrend with trading volume continuously down since mid-July.

Ethereum may have found a new target

As we mentioned in our recent article, Ethereum may now start moving towards its next target, which could be $1,500, the maximum pain price for the August 26 options. Unfortunately, the price level does not correlate with any kind of technical support, meaning that the fall towards it will most likely lead to a continuation of the downtrend.

Moreover, the distribution of open interest on options suggests that investors are not betting on $2,000 yet. The majority of investors see a further decline in the asset as the Merge update is not enough to keep the second largest cryptocurrency’s value afloat.

At press time, Ether is trading at around $1,660, with a mild price correction of 2% in the last 24 hours.