Cryptos extend their falls as NVidia warns and QuadrigaCX goes offline.
Technical levels are not looking great, but each cryptocurrency has its own situation.
Here are the levels to watch according to the Confluence Detector.
Prices of cryptocurrencies continue sliding gradually, with no good news in sight. There are two main pieces of negative press.
NVidia Corporation (NASDAQ: NVDA), one of the world’s leading hardware producer, published financial results and decreased its estimate, citing lower demand for computing gear needed to mine digital coins. The company, which also suffers from a drop in demand from Chinese consumers to other products, has pointed to falling prices of cryptocurrencies as one of the drivers of weaker sales.
The report from the Taiwanese company reflects the current situation.
QuadrigaCX, a crypto-exchange based in Canada announced that it is down for maintenance. This is probably not only a technical issue. The firm is mired in a legal battle with CIBC, one of Canada’s largest banks. Things look worse for users who want to withdraw funds. Social media is full of complaints and concerns that the company is out of business.
Apart from the legal issues, there is also a more tragic side: the death of Gerry Cotten, the founder of the exchange. According to some speculation, Cotten may have had the keys to the cold storage.
While QuadrigaCX’s story may seem an isolated issue, issues with exchanges do not help the crypto-sphere.
The technical charts show that digital assets have support, but there is some room to fall until it is found.
Bitcoin Ethereum Ripple
The good news is that Bitcoin has a more significant support line than the resistance lines above. At around $3,120 we see the cycle low, which is the lowest since 2017, and also the Pivot Point one-month Support 1. This is quite significant, but the bad news is that there is still a long way to go.
Some comfort for BTC/USD can be found in the fact that resistance lines are not that substantial. At $3,472 we see the convergence of the Pivot Point one-month Support 1 with the Fibonacci38.2% one-day and last week’s low.
Another notable level is $3,543 which is the confluence of the SMA 5-one-day, the Fibonacci 38.2% one-week, the SMA 50-4h, the SMA 200-1h and yesterday’s high.
Far above, $3,700 is the meeting point of the SMA 200-4h and the PP one-week R1.
ETH/USD has a clear range
Ethereum has significant support at $104. It is a juncture including the PP one-week S2, the BB one-day Lower, the SMA 5-1h, the BB 15m-Middle, the SMA 10-15m, and the Fibonacci 23.6% one-day.
Further support for ETH/USD awaits at $101.80 where we see the confluence of the BB 4h-Lower, the PP one-day S1 and yesterday’s low.
Looking up, there is a minefield of resistance lines on the way up, but the densest cluster is at $112: it is the meeting point of last week’s low, the SMA 100-1h, yesterday’s high, and the Fibonacci 61.8% one-month.
The next target is $117 where we see the PP one-day R2, the Fibonacci 38.2% one-week, and the SMA 10-1d converge.
XRP/USD has weaker support
Ripple does not enjoy the same level of support like its peers. At $0.2849 we find the convergence of the BB 4h-Lower, yesterday’s low, the PP one-day S1 and more.
The next support cluster is even weaker. The PP one-month S1 and the PP one-day S2 converge at $0.2729.
Resistance is close, at $0.2920 which is the confluence of the SMA 10-1h, the BB 1h-Middle, the SMA 50-15m, the BB 15min-Upper, the PP one-week S2, and the Fibonacci 38.2% one-day.
The next cap is already far: at $0.3200 we find the convergence of the all-important Fibonacci 38.2% one-week and the Fibonacci 161.8% one-day.