As a seasoned analyst with years of experience in the cryptocurrency market, I have seen numerous price movements that could make even the most experienced traders question their convictions. However, one thing remains constant – understanding the market dynamics is key to making informed decisions.
Over the weekend, Bitcoin (BTC) experienced a substantial surge, surpassing the $64,000 mark. This upward trend was triggered by two favorable events that caused the world’s leading digital currency to break free from its recent price stagnation.
1. One initial factor was Federal Reserve Chair Jerome Powell indicating that a period of monetary loosening would start next month. The second significant factor was RFK Jr., who supports cryptocurrencies, endorsing Trump for the presidency following his decision to halt his own campaign.
Bitcoin (BTC) Sitting Above $64,000
Bitcoin, which had already increased by about 3% due to the Federal Reserve’s confirmation of a monetary easing cycle, saw further growth following news that RFK Jr. endorsed Trump. Other significant cryptocurrencies such as Solana, Ethereum, and others also experienced substantial gains. However, while RFK Jr.’s endorsement may have influenced the race, it remains a 50/50 contest. However, Trump’s campaign could potentially benefit from RFK Jr.’s withdrawal from states considered crucial for the election outcome.
Trump and Kennedy have expressed a more welcoming stance towards cryptocurrencies compared to the Biden administration’s approach. Trump has gone as far as proposing the establishment of a strategic Bitcoin reserve in the US, should he come into power. Additionally, he has threatened to dismiss Securities and Exchange Commission Chief Gary Gensler if elected. Meanwhile, the Democratic party, represented by Harris, has shown signs of embracing cryptocurrencies too, with her campaign stating that her administration would be supportive of this technology.
Crypto Markets Surge In 2024
2024 has seen an astounding surge of $623 billion in the cryptocurrency markets, bringing the total market capitalization to a mind-blowing $2.25 trillion. Bitcoin (BTC), the leading and most widely used digital currency, has experienced an impressive rise in value, exceeding $20,000 since the start of the year. Ethereum (ETH) also witnessed a significant increase in value by approximately $500, while Tether (USDT) continued its reign in the stablecoin market, boosting its market cap from $91 billion to well over $117 billion.
Currently, Ripple (XRP) has slipped one place, now ranking seventh, while Dogecoin (DOGE) has advanced to eighth. Previously, Cardano (ADA) held the eighth position. Toncoin (TON) and Tron (TRX) are the last two in the top ten list of significant cryptocurrencies.
Telegram CEO Pavel Durov’s Arrest Impacts Toncoin (TON)
As a crypto investor, I observed a significant impact on Toncoin (TON) following the arrest of Telegram CEO Pavel Durov in France. The news sent TON plummeting approximately 18%, dipping below $5.55. French authorities accused Durov of facilitating crimes through Telegram and cited the platform’s insufficient moderation. Unsurprisingly, Bitcoin (NOT) also took a hit, losing over 20% of its value due to this development. Upon his arrival at France’s Bourget airport from Azerbaijan, Durov was detained under a warrant issued by OFIM.
The apprehension is connected to an ongoing probe focusing on accusations that Telegram fails to regulate its content effectively, thereby permitting illegal activities and criminals on the platform. Authorities argue this lax oversight fosters such illicit actions and raises serious questions about Telegram’s complicity in supporting them.
Binance Faces More Legal Woes
Currently, Binance is grappling with ongoing legal issues. Several people have initiated a class action lawsuit against the platform and its CEO, Changpeng Zhao, claiming they facilitated money laundering. Notably, Zhao, who is still in custody, has been transferred to a halfway house, which means he won’t be released any time soon.
Bitcoin (BTC) Price Analysis
On Friday, Bitcoin (BTC) surpassed its previous resistance level and soared beyond $64,000, boosted by recent market events. Among these developments were Federal Reserve Chair Jerome Powell hinting at loosening monetary policy in the coming month, and Robert F. Kennedy Jr.’s endorsement of Donald Trump for the presidential election, potentially giving the Republican nominee a substantial edge. Over the past week, Bitcoin had been building positive momentum, as evidenced by its price chart that shows a notable spike to a daily high of $61,401 on Tuesday. Despite some sellers preventing it from reaching $60,000, the overall market sentiment towards BTC remained optimistic.
On Wednesday, Bitcoin surpassed its 20-day Simple Moving Average (SMA), rising by 3.50% to reach $61,134. However, on Thursday, it dipped by 1.16%, as the 50-day SMA served as a barrier, halting further upward movement. Yet, factors in the market caused Bitcoin to skyrocket by nearly 6% on Friday, exceeding not only the 50-day SMA but also the 200-day SMA, closing at $64,032. The price remained stable over the weekend, showing a slight increase on Saturday and a slight decrease on Sunday, ending the day at $64,085. Both buyers and sellers tried to dominate the market on Sunday, but neither was successful.
At present, Bitcoin (BTC) has dipped by 0.49% due to sellers aggressively pushing the price below the 200-day Simple Moving Average (SMA). For Bitcoin to aim for $65,000 or even beyond that, buyers need to maintain control and keep the price above the 200-day SMA. If they succeed in breaking above $65,000, there’s potential for BTC to surge towards $70,000. On the flip side, if sellers manage to drive BTC below the 200-day SMA, it might fall back to around the $60,000 mark. The Moving Average Convergence Divergence (MACD) is showing a positive trend, suggesting that buyers currently hold the upper hand.
Ethereum (ETH) Price Analysis
On Friday, Ethereum (ETH) surpassed its 20-day Simple Moving Average and reached $2,700 as markets experienced a significant upward trend. Previously, ETH had been fairly quiet over the last week, struggling to exceed its 20-day SMA due to persistent selling activity. On Wednesday, ETH saw a rise of 2.21%, reaching $2,631, but momentum waned as it had before, resulting in a minor decrease on Thursday. However, the tide turned on Friday as buyers took charge, propelling ETH beyond its 20-day SMA. This action led to an increase of 5.36% for ETH, allowing it to break through the $2,700 resistance level and settle at $2,764.
On Saturday, there was a significant effort by buyers to break through the important resistance at $2,850 with ETH reaching a peak of $2,820. However, their momentum faltered as sellers stepped in, causing the price to drop to $2,769. Despite the strong selling pressure, ETH experienced a slight increase. The buyers’ efforts on Saturday caused ETH to dip by 0.75%, pushing it towards a potential fall below $2,700. Nonetheless, ETH managed to stay above $2,700 and ended Sunday at $2,749. Currently, both buyers and sellers are vying for control, with buyers aiming to regain the upper hand and push ETH back towards $2,850. If ETH can break through and close above this critical level, it could pave the way for a move towards $3,000. Conversely, if sellers maintain control, ETH might slide below $2,700 again, heading towards the $2,500 support level. The MACD, which is currently green, suggests that buyers have the upper hand at the moment.
Solana (SOL) Price Analysis
Solana (SOL) surged over the weekend, breaking past several resistance levels and moving averages. The jump in price also saw SOL reclaim the crucial $150 price level. SOL had been relatively subdued over the past week, especially compared to the price movements we generally see associated with SOL. Buyers and sellers struggled to exert influence, as sellers were unable to drive SOL below $140 while buyers could not push above the 20-day SMA. However, this changed on Friday as buyers seized control, and SOL surged over 7%, breaking past the 20 and 200-day SMAs and the $150 price level. SOL eventually ended Friday at $153, with buyers firmly in control.
On Saturday, an optimistic attitude prevailed as Solana (SOL) surpassed its 50-day Simple Moving Average, following a 4.82% surge that lifted it over $160 to reach $160.78. Nevertheless, sellers held their ground at this level of resistance, causing SOL to dip to a daily low of $155 on Sunday. Yet, buyers managed to regain control at lower prices and propel the price back towards $160. Eventually, SOL ended the day at $159 after a 1.04% decline. As we move into this current session, DOL is showing slight growth as buyers strive to push Solana (SOL) above $160 once more.
Standing at a significant turning point, SOL may influence its upcoming price trends. If it manages to surpass and end above $160, this might signal that buyers have the upper hand and could potentially propel it towards $190. Conversely, should the market sentiment shift, traders might aim to pull SOL back down below $150.
Dogecoin (DOGE) Price Analysis
Over the weekend, Dogecoin (DOGE) attempted to surpass the $0.110 and its 50-day resistance barriers, but failed. Earlier in the week, it had recovered from the $0.100 support level and continued on an upward trend. On Wednesday, a 2.81% surge propelled the price to $0.106, overcoming the daily moving average (SMA) that previously acted as resistance. After dealing with selling pressure and only experiencing a slight decline on Thursday, DOGE experienced a 6.52% increase on Friday, successfully breaching the $0.110 resistance and settling at $0.112.
In this context, the 50-day Simple Moving Average (SMA) served as a barrier for price increase, hindering buyers from pushing DOGE‘s price higher. This obstruction led to substantial selling pressure, causing DOGE to fall by 0.62% on Saturday. The selling trend persisted on Sunday, with DOGE dropping an additional 2.41%, dipping below the $0.110 mark as buyers were unable to turn it into a support level. Currently, DOGE is trading in the negative, at around $0.109. Sellers aim to push DOGE under the 20-day SMA and towards its $0.100 support level. If buyers manage to keep DOGE above the 20-day SMA, they could attempt to challenge the resistance at $0.110 and the 50-day SMA again.
Polkadot (DOT) Price Analysis
Over the weekend, Polkadot (DOT) encountered a setback in its recovery efforts as it failed to surpass the $5 mark. Attempts by buyers to break this price barrier were unsuccessful due to strong resistance. The buying momentum dwindled as DOT faced selling pressure, causing the price to drop in the last couple of trading sessions. Initially hitting a low of $4.22 on August 15, DOT regained strength from this level and gradually moved towards $5. By August 20, DOT managed to reclaim the $4.50 mark, closing at $4.52, and by August 21, it rose above its 20-day Simple Moving Average (SMA) following a 3.32% increase, settling at $4.67.
Following a minor rise on Thursday, DOT experienced a significant jump on Friday, climbing 4.26% to reach $4.89 as investors aimed for $5. On Saturday, DOT surpassed $5, peaking at an intraday high of $5.11. However, the upward trend faltered above $5, allowing sellers to push DOT below $5 once more. By the end of trading, DOT closed at $4.98 after a rise of 1.84%. Sellers were anticipated to safeguard the $5 mark, leading to DOT’s momentum slowing down and causing it to decrease by 3.01% on Sunday, settling at $4.83. Currently, DOT is down by 1.86%, trading near the $4.74 price point.
In simpler terms, if the current trend of demand continues for DOT, it might recover and potentially reach $5 again. But if DOT’s price drops below $4.50 or its 20-day Simple Moving Average, a downtrend could occur. However, it’s unlikely that DOT will easily give up the current levels without a strong resistance from buyers.
Ripple (XRP) Price Analysis
On Friday, Ripple (XRP) breached the $0.60 resistance barrier due to increased buying interest, following a period of relatively low price fluctuations. Earlier last Monday, XRP saw a jump of more than 6%, surpassing its 20-day Simple Moving Average and settling at $0.599. Yet, sellers managed to protect the $0.60 mark, preventing buyers from maintaining an upward momentum. Consequently, XRP dipped on Tuesday, losing 0.87% to reach $0.594. It was only on Friday that buyers regained control and pushed the price of XRP up by 2.24%, reaching $0.611 and finally surpassing the $0.60 level.
On Saturday, attempts by buyers to raise prices met resistance due to intense selling at higher levels, causing a peak at around $0.631. After this, sellers took over and lowered the price to $0.613, resulting in minimal growth. The selling pressure continued on Sunday, decreasing XRP by 2.02%. Today, the price dropped below $0.60 by 0.32%. Whether XRP can maintain its position above the moving averages will determine its future direction. If it does, we might see another test of $0.60. But if it falls below the moving averages, XRP could slide towards the $0.55 support level.
SEI Price Analysis
SEI experienced significant growth throughout the weekend, soaring past its 50-day Simple Moving Average (SMA) and critical resistance barriers. On Wednesday, it surpassed the 20-day SMA and persisted in its upward trend on Thursday, ending at $0.28. It recorded an impressive spike on Friday, climbing by 15.80% to transcend the resistance at $0.30 and the 50-day SMA, finally settling at $0.32. Over the weekend, SEI continued its ascent, registering a 5.56% increase on Saturday and a 1.02% increase on Sunday, despite substantial selling pressure.
The current session sees SEI up by 0.48% as buyers attempt to push above $0.35.
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2024-08-26 14:01