Crypto markets are in an expected consolidation period and could experience either a pullback or reach new yearly highs.
Recent literature has explored the predictability of cryptocurrencies using machine learning techniques, and has found various patterns such as herding biases and anchoring effects during periods of fear (e.g. coronavirus fear) which are nonlinear and environment specific.
ETH
Bitcoin (BTC) and other cryptocurrency tokens can be highly unpredictable, with its price currently exceeding $31,000 but possibly fluctuating upwards at any moment.
Ethereum (ETH) prices have seen a significant surge this week, now trading above $400 mark. This surge can be attributed to Ethereum implementing new security measures which have enhanced its stability and reliability, ultimately contributing to this price spike.
Ripple markets itself as an international payment solution for large financial institutions that uses blockchain technology to facilitate cross-border payments faster and less expensively than would otherwise occur. International transactions would otherwise take days and incur huge fees; with Ripple they can now complete them almost instantaneously!
The crypto market has long been known for parabolic rallies that eventually turn into extreme overvaluations and brutal bear markets. Ethereum (ETH) and Bitcoin (BTC) could soon follow this pattern, with SAR indicators moving below price action, signalling it is time to sell. Litecoin’s rally could also be due to their block reward being reduced by half in August; making mining harder due to decreased block rewards.
BCH
Cryptocurrency markets have earned themselves a reputation for dramatic price jumps that ultimately cause overvaluation of assets. Knowing when and how to avoid such bubbles is essential for continued profitability in this space.
Bitcoin Cash has fallen victim to one of these bubbles this year and seen its market value decline significantly. Nonetheless, thanks to several positive developments its price may rebound quickly from current lows.
First, Bitcoin Cash has its halving event set for August, which should make it more scarce. Second, Ripple has been talking with banks about using its platform for cross-border payments – an area in which traditional systems often struggle due to high volumes of low value transactions that can be very costly for them – something Ripple hopes to address with their solution being tested with several financial institutions and as a result XRP token has increased by 5% this week due to being the only major cryptocurrency to trigger a high timeframe signal signal this week.
DSH
Cryptocurrencies are well known for their spectacular parabolic rallies that often result in extreme overvaluation. When this trend reverses, markets can quickly dive. Therefore, it’s crucial to recognize when such technical indicators trigger. CNBC offers this guide that highlights coins which could see large rallies soon enough.
Litecoin could be poised for another rally thanks to its August halving event, which will reduce block reward by half and make mining harder and scarcer.
Bitcoin Cash price has dropped below its $1,220 support level and BCH/USD has come under increasing selling pressure in recent days. If this pair cannot break back above this point, further declines may occur.
XRP
Ripple is a blockchain-based cross-border payment solution used by banks. With hundreds of partners from various financial institutions around the world, it is well-known for its low transaction fees and quick processing times – not to mention its native cryptocurrency known as XRP which you can use either for funding transactions on Ripple network or as a form of investment.
Although investing in cryptocurrency such as Bitcoin or Ethereum may seem tempting, you should do your research first before making any investments. There are thousands of cryptocurrencies out there and not all offer equal returns – some offer significant advantages while others may come with substantial downsides.
XRP price rally may be caused by multiple factors. One might be an increase in sentiment following an SEC lawsuit resolution or possibly it is related to Litecoin halving; they both trade at similar levels so an uptick in either could trigger a rise in both.
