Cryptomarket Fundamental Analysis: Black Swan For BTC While ETH & XRP Losing This Year Gains

Vasu Singhal
Vasu Singhal is a management student and a stock market trader. He believes that investment avenues and opportunities are very diversified. Therefore, he has an interest in blockchain technology too. He likes to evaluate best investments available in the financial market with showcasing the required skills.
  • The cryptomarket is been witnessing what has been a complete bloodbath for the majority of crypto assets in the market.
  • The global outbreak of coronavirus, plustoken scam, global market crisis is being some few aspects that handed over complete powers to the bears for the crypto market for the past few days.
  • Today, the overall market capitalization stands at $156,285,929,633 with volume traded of $244,612,357,117. The overall dominance of BTC dipped from 65% to 63%.

The top leading crypto assets in the market faced most of the downfall in the market which has brought their prices to significantly lower levels respectively. However, the market showed little signs of recovery at regular intervals but wasn’t powerful enough in front of the bears.

Bitcoin (BTC)

btc
Source: Tradingview

The downfall in the price of BTC has been the topmost concern in the crypto market. On a 7day-weekly chart, BTC started with a strong price level of $9100. After breaking the level of $9k, it hinted that a major downtrend can be faced by the market. However, the significant downtrend line was formed when BTC plunged below the $8k level.

It was also expected that BTC will show some efforts of sustainability at $6k which went completely wrong. The bearish market forces pushed the crypto assets to its lowest level for the year of $3800. Soon after reaching the level of $3800, BTC again started showing signs of recovery which has brought up the current price to the level of $5300

Verdict: BTC may resume its downfall activities as the relativity between the cryptomarket and global market increases. Also, there has been no positive news on the global outbreak of coronavirus.

For seeing BTC in green again, the global market must provide cryptomarket some positive macro-level news in the market. Therefore, BTC may stay bearish for the upcoming days.

Ethereum (ETH)

eth
Source: Tradingview

Ethereum has also been one of the most affected crypto assets in the market. Before the downfall occurred, ETH was enjoying the support level of $235 and no one even imagined that they will be seeing ether at a current price level of $120. Ethereum hinted its ongoing significant downtrend when it broke below the crucial price level of $200.

The market expected that the crypto assets will be taking a halt at the price level of $150 but the market crash forced Ethereum to reach its bottom level of $105. The only positive aspect ether had that the price of $105 acted as a major support level and pushed the current price to the level of $120.

Verdict: The volatility of ether still remains questionable. No one expected that the crypto-asset will be reaching a price of $105. The current price recovery to $120 doesn’t seem to be very sustainable and the existence of bears may provide another significant downtrend to the crypto assets.

 Ripple (XRP)

xrp
Source: Tradingview

On the 7day-weekly chart, Ripple was having a bullish price level of $0.25 until the bears made a comeback in the market. The price made a negative jump from the level of $0.23 to the support level of $0.20.

The market crash forced XRP to drop from $0.20 to its lowest level of the year which is $0.13. However, after reaching its lowest level XRP showed little signs of price recovery which pushed the current price to the level of $0.15.  

Verdict: XRP is still moving in the very critical zone of $0.10 to $0.15. Looking at the overall market conditions and the current downfall, XRP may face further downfall which can even break the level of $0.10.

Yes, it will be surprising to see XRP plunge below the level of $0.10 but the market is providing us more drastic price levels of crypto assets with the ongoing conditions. Therefore, bears still have the potential to hold on XRP

OVERALL VERDICT

The Bloodbath may get more intensified. Investors should back their portfolio with strong fundamental assets.

As the global market is facing a more significant downfall and trading platform of several countries being put at a halt, the crypto market traders should not expect the green phase in the market any soon. The downfall may get more significant and crypto-assets may touch more of the lower price levels than current.

Now, the concern remains what steps and trade should investors or traders in such negative and volatile conditions take?

  • Avoiding large trading amount in a single transaction should be kept in mind by the investors during these ongoing situations
  • Analysis of volatility of the crypto assets before investing can provide an insight to the investor of how much a crypto asset can deviate from its current price
  • Buying crypto assets that are at its lowest level could be a rational bargain for an investor. However, the investor needs to make sure that the coin will not suffer any further low levels.

According to the arbitrage pricing theory, and rational investors always seek to build a portfolio during the time of fear in the overall market. The theory is also supported by the billionaire investor Warren Buffet.

To satisfy the theory, investors must buy crypto assets that are at their lowest levels. However, the volatility of the overall market still haunts.

Verdict: Crypto traders must target stablecoins and other crypto assets which are having strong fundamentals and future projections. Therefore, the coin must be gaining in its first-mover advantage when the market will turn bullish so that the investors can fill in their pockets first.

The Telecom industry can be one of the targets for a profit-making crypto portfolio as the sector is having a lot of scopes and performing positively in the global market during the current going crisis and in upcoming days.

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