Cryptocurrencies waver as the lacklustre direction continues

May 26, 2022 - 1 month ago
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Having shown favourable upside potential across the board, crypto markets continue to struggle to regain upward momentum.

Meanwhile, Bitcoin’s price action day range has been flat as the market flirts around the US$30,000 handle in a lacklustre range for ten consecutive days.

Meanwhile, Ethereum has followed a similar pattern, as the market price action struggles to capture the region (resistance) at US$2,140-70.

Rising inflation, geopolitical crises, and concern over tighter monetary policy by the U.S. Fed are affecting global markets and crypto markets right now.

The U.S. Fed delivered the first-rate hike in 22 years on May 4 to combat inflation, which slowed to 8.3% in April, according to the latest inflation report.

The recent release of the minutes from the last U.S. Federal Market Open Committee (FOMC) meeting on the 3-4 of May on Wednesday suggested the central bank won’t be any more hawkish in aggressively raising interest rates in the months to come.

The U.S. Federal Open Committee Meeting (FOMC) minutes revealed an agreement among Fed officials that inflation was “elevated, reflecting continued supply and demand imbalances, higher energy prices, and broader price pressures.”

However, the U.S. Federal Open Market Committee (FOMC) is likely to continue to raise interest rates by a half-percentage point each in June and July, amid growing urgency to combat surging inflation and avoid an economic downturn.

As Bitcoin currently struggles to advance above the US$30,000 level could soon be a troubling sign for the bulls, as selling pressure may return and send the market back to the recent lows made this month around US$25,300.00.

With the key/major support regions intact from US$28,000.00 to US$23,400.00, a decisive break would be very concerning from a bullish aspect as there isn’t much support viewed until reaching the region of US$19,000.00 level.

Conversely, while the key/major support regions are intact, we anticipate further ground to be covered and eventually see the pathway open up to the US$31,200.0 challenge.

A decisive break here should generate renewed momentum to target the region of US$35,000.00 to US$37,000.00. Reassess from there.

Based on the technical indicators for Bitcoin, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds a positive signal as it sustains above the 50-midway point.

Meanwhile, the Moving Average Convergence Divergence (MACD) oscillator supports a weak positive bias, while the ADX (trend) indicator holds a ranging market.

Daily Chart of Bitcoin

The ongoing trading activities in the Ethereum market haven’t changed much in the last 24-hours as the price action fluctuates near or around the $2,000 threshold.

One takeaway from the technical assessment is that the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has weakened.

Meanwhile, the Moving Average Convergence Divergence (MACD) oscillator supports a weak negative bias, although it has the potential to support a positive bias soon. The ADX (trend) indicator holds to a ranging market.

While the 100.00 Fibonacci retracement support level is intact at US$1,685-90, bullish eyes should continue to focus on the resistance at US$2,140-70.

A decisive break above this region should generate a move to the current breakdown level at US$2,500.0. Reassess from there.

Conversely, beneath US$1,685-90 would be concerning from a bullish aspect as this may, in terms of strengthening the bearish sentiment and setting up a move to the US$1,280-90 zone.

Daily Chart of Ethereum

Having displayed an impressive bull run, Binance, the global crypto exchange utility token momentum, appears to be slowing since breaking above the US$330.00 threshold.

That being said, while tracing the technical patterns, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds to a positive bias; however, it remains close to the overbought region, while the Moving Average Convergence Divergence (MACD) supports a positive signal, while the ADX (trend) indicator supports a ranging market.

As mentioned above, if the bulls abandon the upside call from US$350.00 to US$355.00, we could instead see a move back to the support area located at US$315.00, with US$294.00 located beneath. Reassess from there.

Daily Chart of Binance

The ongoing trading activities of Cardano (ADA/USD) market operations hold a steady consolidation pattern that lingers into the ninth consecutive day.

Continuing to keep an eye on the two key points (support) at US$0.42 to US$0.48, it is assessed that the overall pattern should eventually reach the shores of US$0.60 to US$0.72.

Reassess from there; we may even see US$0.84 claimed in the near term.

Conversely, a break of the region from US$0.42 to US$0.48 would be a devastating blow for the bullish assessment, as this may, in terms, open into further uncharted territory and give a measured move from US$0.42 break to US$0.30-US0.33.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds a negative bias, while at the same time, the Moving Average Convergence Divergence (MACD) holds a weak positive signal, and the ADX (trend) indicator supports a ranging market.

Daily Chart of Cardano (ADA/USD)

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