From yesterday when the evaluation of the cryptocurrency market capitalization was hovering around the $200B resistance till now we have seen an increase of over $24B as the evaluation of the market cap is currently sitting at $224,815,767,627.
Looking at the global chart we can clearly see that the resistance has been broken with a strong upward momentum.
Bitcoin’s dominance has declined from 55,38% to 51.8% as the market gains confidence, arguing my point of this number as an indicator of the market sentiment.
Consequently, the market is in green with an average percentage of change being around 6.8%. The biggest gainer so far is Ripple with an increase of over 85% from yesterday’s opening price at $0.323 surpassing Ethereum in the market cap and is currently at the #2 place in the rankings.
Even though I highly doubt that any news is impacting the market at the moment, there are speculations that crypto market is recovering strongly as Switzerland took steps to help blockchain companies get access to traditional banking services. As reported by investing.com The Swiss Bankers Association (SBA) issued guidelines to help banks create accounts for digital currency companies. The country has been facing an exodus of blockchain projects, as companies leave due to the difficulty of getting access to basic banking business needs.
“We believe that with these guidelines, we’ll be able to establish a basis for discussion between banks and innovative startups, making the dialogue simpler and facilitating the opening of accounts,” SBA strategic adviser Adrian Schatzmann said at a news conference.
Ripple Price XRP/USD
As requested by the readers I am going to do an update on Ripple from yesterday’s analysis when I called out a retracement for the price of Ripple after we have seen the exponential recovery of 35%+ in a couple of days. Currently, the price of Ripple has spiked up to $0.639 which is over 72% increase from yesterday’s resistance levels.
Looking at the hourly chart we can see that the price has grown exponentially which is in itself an unsustainable, and probably caused by FOMO.
Zooming out to the 4h chart we can see that much like the last time price exponentially grew up this is only a corrective move that is intended to retest the prior resistance before the price can go further down. I don’t believe that the price can go up for much longer but it could go up to where the primary wave W is at around $0.92 . What is most likely going to happen is that the price is going to break this minor resistance on which it has been stoped out and end the Y wave on the $0.7.
In order to see how much more the price has room for growth I have zoomed into the 15 min time frame and counted the waves.
First I have inspected the range once again and counted the sub wave in order to see if I made a mistake while counting.
As you can see I was correct In counting the start of an impulsive 12345 of a minor degree from the $0.253 level. After an impulsive move, there is a correction according to the Elliott Wave Principle and that is exactly what happened to expect the correction ended more quickly than I have expected it.
Now we are seeing another impulsive move to the upside which broke the resistance level and propelled the price upward. For concluding how long the price could go up we are going to look at the last section of the price action.
While I was writing this the price got to the projected level Y around $0.7 went above it spiking up to $0.79 and is back below the level again leaving a wick on the 15 min chart. This is interesting because I said in the beginning that I would expect this level to be the optimal target for the upswing completion, and seeing the price action live getting rejected beyond it kind of asserts my points – the price has entered sellers territory pushing it down below it quickly like it came up.
Again, the price could go up to $0.92 to retest the W wave beginning leaving a corrective structure in the opposite direction valid, but I believe that the upswing is losing its momentum as the price retraces back by over 16% on the 4h chart from its peak today.
Ripple is of course in the buy zone on the hourly chart as well as on the other time-frames
Ripple has surpassed Ethereum in the market cap by 2.400.000.000$ and is currently ranking at #2, but I highly doubt that this is going to go on for much longer as those cryptocurrencies are in the different stages of their market cycles – Ripple has been falling steadily from 23th of April and has bottomed out, while Ethereum has started its declining path on 5th of May, ‘lagging’ behind it. This is why I think that the tables are going to turn and ETH is going to be at #2 again as Ripple would have to cool off while Ethereum’s price is going to recover again.