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Cryptocurrencies try to recoup losses, Ripple in the lead

Summary:

  • Cryptocurrencies try to recoup losses from the last week
  • Bitcoin (BTCUSD on xStation5) recovers but it faces a strong local resistance
  • Ripple (XRPUSD) and Dash (DSHUSD) lead gains this morning as they could be added by Coinbase

Cryptocurrencies experienced a really wild ride just before Chrismas. The scale of moves was impressive, especially when it comes to Bitcoin, despite the fact the volatility on such instruments is usually larger than on traditional markets. However, the most popular virtual currency is not a top-mover today. Ripple (XRPUSD) and Dash (DSHUSD) were in the lead this morning as there had been reports that they could be added by Coinbase, one of the biggest digital currency exchanges based in the US.

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 Ripple and Dash were among top-movers this morning. Source: xStation5

Let’s start with the latest developments in Bitcoin. As we already stressed out the most popular cryptocurrency experienced the worst week since 2013. Its price slid below $11,000 on Friday. Some point out a profit-taking as the main reason for this slump but it’s worth mentioning that the number of daily transactions also went down on Friday and altcoins have been grabbing more attention. The recovery from this week coincidences with a resumption of bitcoin futures trading on the Chicago Board Options Exchange (CBOE) and CME, since regulated stock markets and options exchange only operate during the weekdays. Moreover, a hard fork named Segwit2X is expected to be released tomorrow. It was to take place in mid-November, but the date was redefined.  The upgrade is to solve the fundamental problems of BTC. However, its goal is not the replacement of the original Bitcoin, but the effective coexistence of two cryptocurrency networks. Note that when the fork occurs, each BTC holder will have an opportunity to receive B2X in the ratio of 1:1. The occurrence of the new cryptocurrency may increase volatility on the market. 

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 BTCUSD hasn’t been able to break above 61.8% Fibo retracement. A bearish engulfing could be drawn on H4 interval. Source: xStation5

Further on, Ripple (XRPUSD) and Dash (DSHUSD) took the stage gaining respectively 4.90% and 2.20% this morning. There were some reports suggesting that both cryptocurrencies could be added by Coinbase in the near future. Coinbase is the leading US platform for trading digital currencies so such move should help accelerate the popularization of Ripple and Dash. However, Coinbase has not officially confirmed this information yet. Note that Ripple has experienced a stunning rally this month as more and more banks are interested in testing this tool. 

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Ripple is trading well above $1.00 handle. A 21-period EMA could act as a local support. Source: xStation5

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