Crypto Market Review, October 6
The market continues to consolidate, with some assets showing exceptional performance
The cryptocurrency storm is calming down as most assets enter an extended period of consolidation, producing promiscuous performance across the industry with some exceptional cases such as XRP or Uniswap.
XRP’s successful breakthrough
The symmetrical triangle on XRP we mentioned in our previous market reviews has finally been broken as the asset is now moving towards the next resistance level on the chart. The formation of the pattern was a necessary condition for the continuation of the rally towards the next target of $0.65.
When assets go through volatile price increases, they fall into corrections or consolidations shortly after to “cool down.” The scenario XRP went through is similar to a textbook definition of an uptrend: assets go through a volatile price increase, enter consolidation in the form of patterns or range limits, and then form a new “leg” to the upside.
Fortunately, it did not take XRP too long to continue its upward movement, and the asset successfully calmed down in less than three weeks. According to rising volume profiles, we will see the continuation of the rally for the foreseeable future. However, it is important to note that XRP is highly dependent on general market sentiment and will most likely fall if Bitcoin and other assets suddenly face significant selling pressure.
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Bitcoin does not break the 50-day EMA
Unfortunately for the support of the first cryptocurrency, Bitcoin has unsuccessfully battled the resistance of the 50-day moving average for the third day in a row now and is unable to break through.
The lack of trading volume and influx from large retail or institutional investors keeps digital gold from entering a reversal trend. According to CoinShares’ data, in recent weeks the cryptocurrency market has received less than $10 million in inflows from institutional investors, showing the lack of demand for exposure in the crypto market. In particular, the majority of existing inflows were directed into shorting Bitcoin ETFs, which are similar to shorting the asset via futures contracts.
Ethereum aims for $1,500
Over the past few weeks, Ethereum’s price performance has been far from ideal as the second largest cryptocurrency on the market has continuously moved down in value following the implementation of Merge.
Fortunately, over the past few days, Ether has shown some positivity, gaining over 5% to its value and reaching the first significant resistance level on the chart. The next target for ETH should be around $1,500, as this price level will be the next stop for the asset if it succeeds in breaking the resistance level of the 50-day moving average that acts as a barrier in front of its uptrend entry.
