Some Pundits Claim the Storm has Left the Crypto Marketplace
Some pundits are proclaiming the worst of the cryptocurrency bear trend is over and speculators can safely return to the marketplace. Some analysts claim it is because the ‘the chill’ of the U.S tax season is coming to a close and buyers again are participating. However, two days of short-term gains don’t signal a broad advance and a steady climb to come. It may be wise to acknowledge many U.S traders are simply going to pretend they didn’t participate in cryptocurrencies regarding the IRS and its reporting requirements, and this may catch up to the traders later. Also, it is questionable where most of the buying came from on late Thursday and Friday geographically.
Ripple Rises and XRP Challenging Resistance, Cryptos Enjoying Sunshine
It would be foolhardy to say the rise in cryptocurrency values made on Thursday and Friday means the bear trend is over and that traders can safely proclaim they are out of the woods. However, Ripple along with the other major digital assets certainly enjoyed the sunshine for the first time in weeks. But key resistance has not been toppled yet, so concerns should remain a valid part of the risk management equation. XRP is trading near sixty-five cents per coin and is clearly testing mid- March levels. Resistance for Ripple if it should advance at price – appears to be seventy-six cents. While support should a downdraft occur looks to be fifty-three and forty-two cents respectively if headwinds intensify.
Crypto Flourish Upwards & Insights about Short Term in Perspective
Last week provided an interesting window into cryptocurrencies regarding their trading correlations. The major digital assets did not climb as news sparked last week regarding threats from the White House about potential military action in Syria. And then when the cryptos put in a solid flourish upwards, it occurred when risks were perceived to be lower. And now this weekend, the broad crypto market has become tame and prices have leveled off from their short-term highs, this after a military action did take place in Syria. Meaning trading insights remain difficult and the marketplace is still quite young, and rough sailing should still be expected occasionally because it remains a speculators market.
Yaron Mazor is a senior analyst at SuperTraderTV.
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