The market has been crazy this week. We had the largest single dump in one day, but with the arrival of good news that China is closing the temporary hospitals in Wihuan, where the coronavirus epidemic began, due to the success achieved in reducing the spread of the virus, the crypto market could begin to show recovery symptoms.
Of course, there is a long way to go, but especially in the cryptocurrency market due to its volatile characteristic, this factor is shorter and it is a point in favor that we will likely see in many altcoins show clear signs of recovery as normality returns to market hand in hand with Bitcoin.
Due to the importance in terms of volume and market capitalization that the most important altcoins such as Ethereum and Ripple’s XRP token represent for the market in general, we will focus our analysis for the short-term projection of the two coins.
Ethereum Price Analysis
Vitalik Buterin’s altcoin and the most important coin in the market after Bitcoin, fell in depth these last two days due to strong congestion in its network that led to an unusual increase in its fees. The fees reach a new high not seen for a year, as reported yesterday in our last post on the situation of the crypto market.
In addition to congestion, the De-Fi sector of high importance for the growth of Ethereum, observed how the fall of the crypto market triggered liquidations through MakerDAO and the Compound Lending Protocols.
The data indicates that, at the time of data collection, $ 4.19 million in ETH and approximately $ 120,000 of the stablecoin USDC were settled in the last 24 hours.
MakerDAO, another DeFi lending platform, also saw a huge increase in the number of settlements, according to data available from CryptoRank.
Ethereum Current Situation
Ethereum managed to drop as deep as $ 93.03 to accumulate a monthly loss of up to -47.48% and some analysts still expect further bearish activity to the $ 82 zone.
However in the short term, the cryptocurrency is recovering lost positions towards the $ 125 zone as the network congestion improves, markets show signs of recovery and panic leaves the market.
We expect a rebound from the altcoin towards the fundamental break of $ 126.55, allowing it to move away from the support zone and even more from the unwanted S1 point at $ 82. If ETH manages to break the $ 126.55 level, we could expect a small Rally short towards key resistance at $ 156, which would mean double-digit profit of up to + 26.30%.
The medium-term SMAs are now Ethereum resistance located at the $ 199.93 and $ 212.63 levels which marks a return to the previous week starting point.
In that sense, the Aroon indicator is signaling that the bearish fuel is running low as its red signal begins to decline. However, its counterpart remains stable at the bottom, so a rebound with a subsequent drop before a final takeoff is not ruled out.
Stochastic on the other hand is already leaving the oversold panic zone and it is starting to improve its range towards the equilibrium zone that could give new oxygen to the Ethereum market.
Ripple (XRP) Price Analysis
Ripple’s XRP token, the third-largest cryptocurrency in the market did not escape the discouraging market outlook either. The token peaked at $ 0.11 and managed to lose a cumulative -37.89% in the last 30 days.
Now the token could have a deep buy zone in the worst case scenario at the $ 0.07- $ 0.010 levels before a bullfight begins. From there on, XRP should rise to $ 0.20 again without complications and in the medium term we could see it located at $ 0.25 without any problem.
Aroon also notes that the current downtrend may be ended in the near term with a token bounce to the key zone of $ 0.15. After there, we could locate a short recovery to $ 0.174 and $ 0.187.
On the other hand, Stochastic points to successful entry into the intermediate buying and selling zone, which indicates that for now the interest in buying the token is growing, translating into an improvement in prices as the selling pressure decreases.
