The market bulls are enjoying a relief in the calm following the devastating storm. The engaged reverse gears last week leading one of the worst selloff in the crypto market. The unforeseen declines hit most people by surprise and investors are still licking their wounds as they wait for a reversal. Virtual currencies like Ethereum (ETH) hit their annual low this week with the price touching $124. There is aa slight correction in the market but the bulls lack the momentum to sustains gains. The market is currently mixed red and green, which is palatable picture compared to Tuesday and Monday this week.
Bitcoin experienced a brief recovery yesterday from the lows traded at $4,224. The upside seemed to head for $5,000 but dell short marginally below $4,800. Another downside reaction took the crypto back to the drawing board testing $4,200. Bitcoin is attempting to shake off the bear pressure but a key resistance at the 23.6% Fib retracement level between the last high at $5,665.36 and a low at $4,040.22 is limiting the gains. BTC/USD is trading at $4,388.
The moving averages are still above the price on the 2-hour range. Besides, the gap between the 100 SMA and the 200 SMA is increasing to show that bear pressure is also rising. This means that recovery will not be easy. However, the stochastic shows that the momentum is in the bulls’ favor with it moving north towards 50. Bitcoin price must correct above $5,000 and establish a higher support to ensure that it comes out of the danger zone it is currently trapped within.
Ripple’s XRP has been considerably stable in the period of turmoil that has entered the second week. The crypto has also been able to shake the bear pressure and recovered above $0.5 after it found a support at $0.44 last week. However, the fresh declines in the market since the week started have seen Ripple lose ground. Besides, the recent drop tested $0.42 on Tuesday night.
At the time of writing, XRP is trading at $0.446 after a bullish correction from the support, $0.42. The asset has also formed a double-top pattern at the base support. A reaction and breakout is expected to boost the price above $0.48 and eventually $0.5. Meanwhile, the immediate resistance at $0.46 will place the token on a recovery journey as mentioned before.
NEM is currently the 15th largest crypto project in the market. It boasts of a market cap of $706 million and a 24-hour exchange trading volume of $16 million. It has also corrected lower by 5.66% in the same period. Since November 12, the crypto has been weathering off within the confines of a sharp descending channel. Fortunately, the declines seem to have found balance at $0.0749 and a recovery move is underway. NEM is trading at $0.08 while the bulls focus on breaking free from the channel resistance.
In fact, the short-term 100 SMA is currently crossing above the 200 SMA on the 2-hour chart indicating that the bulls are back from hibernating and ready to take charge. The stochastic had retracted below the 50 mark is currently making its way back up. As long as NEM keeps the support at $0.0749, it is prime for recoil towards $0.1.