Crypto Market Review, September 1
Some cryptocurrencies are making great returns on the market, while others are struggling to find ground under their feet
Despite the market deadlock, we see diverse dynamics among digital assets in the market today as some assets like XRP lose local support levels, or old classics like Litecoin return to the top of the most profitable assets in the market.
XRP is facing serious problems
Despite the short-lived success of Ripple on the field and relatively calm results in the market, XRP lost the local support level, which should have been the basis for a potential future rally.
The trendline we discussed earlier was present on a number of assets across the market, and XRP was no exception. The trendline formed back in July when XRP returned the local psychological resistance at $0.3.
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After increased selling pressure, XRP fell by more than 10% in less than 24 hours, performing another test that appeared successful at first. Unfortunately, after five days of consolidation, bulls lost the battle to bears and the price of the token fell below $0.33, breaking the 70-day support that led the asset higher.
Litecoin is back in business
It was a pleasant surprise for old-school cryptocurrency traders to see Litecoin back on top of the most profitable assets for the first time in a long time. After the release of private transactions, most exchanges spoke out against the use of the new technology which put the existence of most trading platforms at risk.
Despite a prolonged decline since May 2021, Litecoin is desperately trying to enter the reversal rally despite losing more than half of its value in the past three months. Unlike XRP, Litecoin is guided by the trend line and is now trying to break through the local resistance of the 50-day moving average.
According to the developers’ blog and activity on GitHub, Litecoin is still actively supported and being worked on. The latest major update suggests that the cryptocurrency will gravitate towards the security and privacy path, becoming something similar to Monero.
Cardano to become anemic
As we mentioned earlier, Cardano moves in a triangle pattern, which is why the volatility of the asset is going to decrease gradually in the coming weeks or even days as it reaches the end of the formation.
Fortunately, when or if the market sees an increase in trading volume, Cardano’s volatility should follow with a breakout in either direction. Taking statistics and trading history into account, assets tend to increase upwards following the completion of patterns such as ascending triangles.
The cryptocurrency market is entering one of the most complicated months for the industry and will most likely face some serious obstacles in the next 30 days. Fortunately, the crypto market has not seen its own “black swan event” and will most likely consolidate until the situation on global financial markets changes.
