2023-07-16 16:00:00
The last few days have been particularly interesting for the cryptocurrency market, especially the victory of Ripple Labs (XRP) in front of the SEC, which allowed many altcoins recently qualified as security tokens such as SOL, MATIC, AVAX, ATOM and many other assets to register very nice increases. However, this weekend, dealers resurfaced pushing the broader market to lower technical levels. With volatility in the air, what should we expect in the coming weeks in the market? Without further ado, let’s head over to TradingView.
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One big step for XRP, one small step for capitalization
Price of the total market capitalization of cryptocurrencies on the 1D unit of time (Bitcoin, Ethereum and altcoins).
It is clear that since last Sunday, the market has managed to overcome the resistance that we had mentioned at 1,160 billion dollars. Now, the challenge is the market’s ability to hold above this technical threshold, rebound and head towards the next resistance at $1.244 billion.
As we saw a while ago, the market attempted a breakout, lower, which did not result in a flip of resistance as support. So, has the time finally arrived for cryptocurrency capitalization? This is what we will be watching closely over the next few days, hoping that this is really the case. If the bulls failed to hold the current technical level, then we would likely see $1.063 billion once more.
Smaller Cap Cryptocurrencies Take Advantage of the Rise
Price of the total market capitalization of cryptocurrencies on the 1D unit of time (Bitcoin and Ethereum excluded).
Currently, it turns out that the altcoins have managed to break free from the pivot within the range in which the capitalization has been evolving for many months. This is a rather interesting sign, in favor of a continuation of the rise over the next few weeks. However, capitalization still faces another resistance, at 375 billion dollars, before being able to return to the upper limit which is at 405 billion dollars.
Thus, over the next few weeks, the challenge will lie in the ability of capitalization to break out of the red zone, which will allow altcoins to extend the rise and seek the technical level of 405 billion dollars. However, a reintegration below the pivot will be a bearish sign that will cause the altcoins to return to the lower limit of the range in order to revisit the previous lows.
The king of cryptocurrencies in a rather favorable situation
Course of Bitcoin dominance once morest other cryptocurrencies over the unit of time 1D
It’s been a while since we had the opportunity to look into the situation of the king of cryptocurrencies. There is little to see since the momentum is still bullish on a daily scale. After getting closer to the resistance zone at 53%, the price went back down briefly, now returning to the technical zone at 50%.
As long as this technical level is maintained, then the bias to have on the dominance of bitcoin is rather bullish. However, if the dominance drops below 50%, it is quite possible that the price will return to the previous technical zone (represented in blue), which would allow altcoins as well as Ethereum to have a window of opportunity to go to the rise.
A technical opportunity for Ethereum?
Ethereum price once morest Bitcoin over the time unit 1D
For ether, it is clear that the situation turns out to be a little better than last week since the current low is now higher than the previous low, especially since a new high has been set, this which allows us to envisage a reversal of the upward trend.
From now on, the objective of Ethereum is simple: to overcome the technical zone (represented in red) in order to allow the altcoins to register a powerful upward trend with a first technical objective corresponding to the oblique resistance represented in red . However, it is now that Ethereum will have to show its buying strength since a bullish failure would result in a passage below 0.06 BTC.
Are DeFI cryptocurrencies in top form?
Decentralized finance cryptocurrency capitalization rate over time unit 1D
For decentralized finance altcoins, the sector is clearly benefiting from the victory of XRP as the capitalization has managed to overcome the technical resistance zone at $41 billion. Now, let’s watch this area closely hoping that the market capitalization will flip this technical threshold as support to rebound towards $47 billion. If it does not succeed and it reenters the previous resistance, there will be a good chance of seeing a return of the price to 35 billion dollars. For now, the bias to have is bullish.
Here we are at the end of this analysis of the crypto market, the famous Weekend Crypto Point. It is clear that the victory of XRP has benefited the entire market, in particular Ethereum in view of the slight loss of dominance of Bitcoin as well as the gain registered by ether once morest the king of cryptocurrencies. This trend, starting to take place a few days ago, will have to be maintained in order to have a real rise in altcoins over time. For now, the bullish momentum is still fragile and not assured for the coming weeks. Thus, the hypothetical drop in bitcoin’s dominance below 48% might be very good news.
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