Crypto on the brink – bounce needed soon

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The sell-off in cryptocurrencies continues as the geopolitical situation takes its toll.

Crypto is potentially facing another down day while global markets are still looking relatively unperturbed by events in the Middle East. The major indices in the U.S. closed in the green, while the Hang Seng Index in Asia had another good session overnight.

Bitcoin continues to weaken

Therefore, it remains to be seen why bitcoin is suffering its fifth daily red candle in a row, having come from just under $28,000 last Sunday to its current price of $26,780 on Thursday.

The reason for the hit on crypto could just be that it is still probably viewed as the riskiest of the risk assets, and this is the first one for investors to divest before moving to the other perceived safer assets.

Be that as it may, bitcoin has sold off a little quicker than other cryptocurrencies given that BTC Dominance has fallen the last couple of days. Time will tell whether dominance will continue an uptrend that has been in force since early January.

Ethereum in danger

After holding quite strong yesterday, ethereum looks to be in danger of dropping out of the bottom of its long term ascending triangle. As things stand, $ETH is on support at $1,550. Both the support and the trendline of the bottom of the triangle are combining to keep $ETH afloat, along with a downwards trendline that started on 14 July.

Such a convergence of support would suggest that $ETH should hold this last line in the sand here. Short term Stochastics, and now even the daily, have bottomed, signalling that momentum can start to turn soon.

Solana holding on

Solana took a further dump today, piercing through the bottom of its bull flag to lose as much as 2.3%. Nevertheless, at time of going to press solana is still holding the bottom of the flag and a bounce is still on the cards.

XRP on last support

One cryptocurrency really under the cosh right now is $XRP. A daily red candle is now below the trend line that price has followed since early January this year. Given that XRP is also on support now, there is a fair possibility that price can return above the trend.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.