- The ECB is pushing for a digital euro in five years, but first, it must regulate Bitcoin’s “funny business.”
- BTC/USD rejected at $40,000 but seeking refuge at $38,000 in a bid to protect the uptrend.
- Ethereum is facing an uphill battle to sustain gains above $1,200 and toward $1,300.
- Ripple is stuck in consolidation in a range between $0.29 and $0.3.
A selected number of coins in the cryptocurrency market has posted double-digit gains over the last 24 hours. Polkadot (DOT) rose to new all-time highs above $15, besides it has accrued 25% in the same period. Similarly, Chainlink (LINK) is trading at $18.4 in the wake of a 15% upswing. As reported earlier, Cosmos (ATOM) intends to rally to $10 but currently holds above $8.
On the other hand, Ethereum has rallied past $1,200 but does not seem to have the momentum to complete the leg to $1,300. Meanwhile, XRP is still limited under $0.3, with $0.29 providing immediate support.
The ECB wants to globally regulate Bitcoin’s “funny business”
The President of the European Central Bank, Christine Lagarde, in an interview at a Reuters, hosted conference reckoned that the largest cryptocurrency had some “funny business” that need stemming out by a global layer of regulations. Lagarde also said that a digital euro is likely to see the light of day in nearly five years.
Bitcoin deals with rejection at $40,000
The pioneer cryptocurrency is fighting to remain afloat at $38,000. This comes after BTC suffered rejection at $40,000 earlier in the day. Marginally under $38,000, the 50 Simple Moving Average is in line to offer support.
Holding above the moving average might help the bulls avoid declines while refocusing Bitcoin on the uptrend to $40,000. However, the Relative Strength Index highlights that bears have more influence, at least for now.
BTC/USD 4-hour chart
Notably, Bitcoin may resume the uptrend if the prices manage to close the day above the 50 SMA if not $38,000. Some delays should be expected at $40,000, but Bitcoin would gain the proper momentum to achieve a new record high if broken.
Ethereum struggles to sustain the uptrend above $1,200
The smart contract giant has brought down a couple of crucial resistance zones; $1,100 and $1,200. However, its immediate upside is limited at $1,240. Ether must hold firmly above the 50 SMA to sustain the uptrend. Besides, price action beyond $1,240 may help validate the gains to $1,300.
The Moving Average Convergence Divergence or the MACD shows that the trend is leaning slightly to the bullish side. However, losses will come into the picture if the MACD (blue line) crosses below the signal (orange line).
ETH/USD 4-hour chart
If the price is rejected at the 50 SMA, we can expect Ether to seek support at the 100 SMA. The 100 SMA may absorb some of the selling pressure and could be the barrier that prevents the price from retesting $1,200.
Note that, Ethereum has been bouncing off ascending trendline support from the beginning of the week. Therefore, it is likely that the losses will be mitigated at this level and allow ETH/USD to rebound strongly.
Ripple holds firmly in consolidation
XRP is pivotal in a narrow range running from $0.29 and $0.3. Countless attempts have been made to clear the immediate resistance to no avail. On the other hand, bulls have ensured no significant declines into the picture by vigorously defending the short-term support at $0.29.
Other vital levels to keep in mind during this consolidation period are the 50 SMA (resistance slightly above $0.3) and the 100 SMA (critical support around $0.27). Trading above the former may validate an uptrend to the 200 SMA ($0.35).
XRP/USD 4-hour chart
On the flip side, massive price drops could engulf Ripple if the 100 SMA support is broken. The bearish leg is likely to stretch to $0.25 before the price rebounds for another shot at $0.3.