Crypto Analytics by Solid ECN

XRP/USD Technical analysis

Current trend
The XRP/USD pair continues to trade within a long-term downward channel.

In general, the downward trend in the market continues, which is confirmed by a downward reversal of Bollinger bands and an increase in the MACD histogram in the negative zone. However, the upward reversal of Stochastic from the oversold zone does not exclude a corrective growth of the XRP/USD pair to the area of 0.7500 but is unlikely to break the current downtrend.

Support and resistance
Resistance levels: 0.7500, 0.7812, 0.9100, 0.9766.
Support levels: 0.5859, 0.4883, 0.3906.

Cardano, decline may continue

The ADA/USD pair continues to decline for the second week in a row as part of the general market trend and is now trading around 1.03.

The pressure on the cryptocurrency market was exerted by the US Federal Reserve meeting, as a result of which the regulator announced a rate increase soon by 0.25%, as well as an upcoming significant reduction in the balance sheet. The head of the department, Jerome Powell, said that the US economy no longer needs serious monetary support, which indicates the possibility of further reduction in incentives and the strengthening of the US currency against alternative assets.

At the same time, recent positive events for the Cardano network and the ADA token — the launch of the decentralized exchange SundaeSwap (DEX) and the creation of the Pavia metaverse — have not yet been able to support prices and reverse the general market downward trend. Also, the launch of SundaeSwap (DEX) did not go smoothly. The excitement around the project caused a large number of users to enter the exchange, resulting in network congestion and the inability to make transactions.

Resistance levels: 1.2150, 1.3671, 1.4650, 1.5625.
Support levels: 0.9765, 0.7812.

Cryptocurrency Market Review
This week, the cryptocurrency market remained calm, and leading assets made minor attempts to increase or decrease. BTC is currently trading around 37000.00 (+4.5%), ETH is at 2430.00 (–0.5%), USDT is around 1.0006 (–0.01%), BNB is at 390.00 (+2,0%), and USDC is around 0.9997 (–0.04%). The total market capitalization decreased to $1.669T, while the share of BTC rose to 41.94%.

The fears of several experts of a further serious fall in the cryptocurrency market after the meeting of the US Federal Reserve did not materialize. The American regulator confirmed its 'hawkish' positions but did not hint at their further strengthening, which could cause additional pressure on alternative assets. Officials only announced the upcoming rate hike by 0.25% and the start of the balance sheet reduction program, but investors have been expecting this for a long time and therefore included this scenario in the price.

Russian news also became a positive factor for the market. The Ministry of Finance opposed the proposal of the Bank of Russia to ban the mining and use of cryptocurrencies in the country. On the contrary, officials propose introducing regulatory rules for the crypto-currency sector, providing for the conduct of transactions with digital assets through banks and the full identification of users. Otherwise, 2T rubles (the estimated value of cryptocurrencies owned by citizens) will go to the shadow sector of the economy. Also, the ministry did not rule out the possibility of foreign cryptocurrency exchanges operating in the country, which will have to create representative offices in the Russian Federation and cooperate with the local banking system.

Of greatest interest is the idea of ​​legalizing cryptocurrency mining in regions with an excess of electricity. The implementation of this proposal may contribute to the additional development of mining in the country, although now it is one of the three world leaders in terms of BTC production after the USA and Kazakhstan, accumulating more than 10% of the world hashrate.

Among other news of the cryptocurrency industry, it is worth highlighting the possible completion of the Diem stablecoin project from Meta Platforms Inc. Previously, it was named Libra and was subjected to severe pressure from the US authorities, who did not want such a large private currency to enter the market.

According to Bloomberg, Diem Association members are currently considering selling intellectual property and other assets to cover investors' costs partially. In parallel, there is a process of gradual dismissal of employees. The issuance of Diem by Silvergate Bank was supposed to start this year, but the financial institution did not receive approval for this activity from the US Federal Reserve, which was probably the reason for curtailing the project.

This week, the US Securities and Exchange Commission (SEC) rejected an application from Fidelity Investments to register a spot bitcoin ETF called the Wise Origin Bitcoin Trust. The officials made the standard argument that spot market investors would not be adequately protected from fraud to justify the refusal. The SEC has previously approved bitcoin futures ETFs, and experts hope that the approval of spot funds will also become possible soon.

In conclusion, we note that according to Bloomberg, the US administration plans to publish a state strategy for cryptocurrencies in February. The paper will address economic, regulatory, and other issues related to digital assets.

Next week, quotes of most cryptocurrencies may consolidate or resume their decline.

BTC USD Technical Analysis

Current trend
Last week, the BTC USD pair attempted a corrective rise and rose above 38600 but is currently trying to resume the decline.

The key “bearish” level is 35000 (50.0% Fibonacci correction). Its breakdown allows a decrease to the levels of 3125 and 28300. The key “bullish” level is the middle line of Bollinger bands. The consolidation above it allows further growth to the levels of 43750 and 46500.

In general, this option of price movement seems less likely since the downtrend in the market continues. The price is in a downward channel, Bollinger bands are directed downwards, Stochastic is also reversing downwards near the overbought zone, and a significant volume of the MACD histogram in the negative zone also indicates the predominance of sellers on the market.

Support and resistance
Resistance levels: 40000, 43750, 46500.
Support levels: 35000, 31250, 28300.

XRPUSD Market Update by Solid ECN
Consolidation in anticipation of new drivers of movement


Current trend
The XRPUSD pair has been consolidating in the 0.63-0.58 range for the second week and cannot yet start an upward movement, despite a number of positive news for Ripple.

Last week, the company's management announced the repurchase of Series C shares in the amount of 200M dollars, released to the market back in December 2019 to attract investment. This increased Ripple's worth to 15B dollars. It should be noted that the head of the company, Brad Garlinghouse, assessed the past year as the most successful in financial terms. In addition, earlier, Ripple announced a partnership agreement with the British payment company Modulr Finance, which should facilitate entry into the UK financial market. These news could not seriously support XRP, which continues to be under pressure within the framework of the general market trend. Investors expect further tightening of monetary policy in the USA and weakening of the positions of alternative assets, as well as the publication in February of the American state strategy on cryptocurrencies. The document will address economic, regulatory and other issues related to digital assets. Most likely, new forms of regulation of the digital sector in the USA will also be indicated.

Resistance levels: 0.6600, 0.7500, 0.7812.
Support levels: 0.5800, 0.4883, 0.3906.​

Cryptocurrency Market Review

This week, the cryptocurrency market remained calm, with leading assets making minor growth attempts or consolidating. Currently, BTC is trading around 38000.00 (+0.7%), ETH is at 2800.00 (+9.5%), USDT is around 1.0007 (+0.02%), BNB is at 380.00 (+1.7%), and USDC is around 0.9992 (–0.05%). The total market capitalization was $1.756T. The share of BTC decreased to 40.87%. This week, JPMorgan Chase & Co. lowered its fair value estimate for BTC from $150K to $38K, citing the asset's continued high volatility, which hinders its adoption by institutional investors. In the future, experts suggest a gradual alignment of the share of BTC and gold in traders' portfolios.

Neutral dynamics are since investors expect further steps from the US authorities. Soon, the US Federal Reserve plans to adjust monetary policy parameters, which may lead to further pressure on alternative assets, including cryptocurrencies. However, it is worth considering the significant impact on the economy of the Omicron coronavirus epidemic, which is rapidly spreading around the world. The publication of the American state strategy for cryptocurrencies, scheduled for the current month, is of even greater interest to traders. The document will consider economic and regulatory acts related to digital assets and the issue of their regulation. Tighter control by the authorities will push the market to a new decline.

This week, the authorities of the world's leading economies have paid special attention to the cryptocurrency industry. Thus, a bill on the taxation of digital assets was submitted to the House of Representatives of the US Congress, according to which it is proposed not to levy fees on transactions if they do not entail a capital gain of more than $200, which should contribute to greater distribution of cryptocurrencies and their use as a means of payment. Also, the Japan Financial Services Agency (FSA) has simplified the procedure for listing on national exchanges. Under the new rules, crypto platforms in Japan will simultaneously place more than a dozen new tokens, while the approval process for this procedure will be significantly reduced in time, which should speed up their entry into the market. The Ministry of Finance of India announced its intention to introduce a 30% tax on any transactions with cryptocurrencies and NFTs from April 1 this year. The government needs to assess the degree of development of the industry in the country, officials said but it will not mean automatic legalization of digital assets. Meanwhile, the Russian authorities are leaning towards introducing strict regulation of the industry but not to a complete ban on crypto assets, as previously thought. This month, the Central Bank of the Russian Federation and interested departments will discuss further steps in this direction. It is assumed that all transactions with digital assets will be carried out through the banking system, carried out under the supervision of regulators, and taxed but the owners of cryptocurrencies will be able to use them for profit. As can be seen, attempts to create rules for the cryptocurrency industry continue around the world but their focus is different, and it is still far from the development of uniform standards.

Next week, quotes of most cryptocurrencies may consolidate or resume their decline.

BTCUSD Technical Analysis by Solid ECN Securities

Current trend
The BTCUSD pair attempted to rise last week and is currently testing the level of 42000 (Fibonacci retracement 38.2%), but for the “bullish” momentum to develop, the quotes will have to break the resistance zone of 42000–43750. In this case, the trading instrument may reach the level of 50000.

The key “bearish” level is the middle line of Bollinger bands around 38500. The consolidation below it allows a decrease to the levels of 34375 and 31250. In general, despite the correction, the downside potential does not look exhausted, which is confirmed by technical indicators.

Bollinger bands are directed downwards, and Stochastic has entered the overbought zone, which may mean the end of the corrective growth.

Resistance levels: 42000, 43750, 46875, 50000.
Support levels: 38500, 34375, 31250.

ETHUSD Market Analysis by Solid ECN Securities
upward correction may end

Current trend
This week, the ETHUSD pair continues to add value and has now risen to the area of 3235.00, which corresponds to four-week highs.

Experts do not have a consensus on the drivers of the current upward dynamics, but many of them believe that the growth is caused by the enthusiasm of investors against the background of the release of January data from the American labor market. The indicators turned out to be significantly better than preliminary estimates and confirmed the overall resilience of the American economy to the consequences of the pandemic caused by the COVID-19 Omicron strain. This, in turn, aroused interest in risky assets, including digital ones, on the part of bidders.

As for the ETH positions, in the long term they continue to be supported by the expectation of the merger of the Ethereum and Ethereum 2.0 networks and the transition to the Proof-of-Stake (PoS) algorithm. The main operating network is still experiencing significant problems due to high fees and limited bandwidth, which specialists cannot solve in any way. The other day, Ethereum founder Vitalik Buterin and lead developer Tim Beiko proposed a new improvement option – to use transactions with a large amount of binary data ('blob-carrying transactions'). This measure is seen as temporary, for a period until the Ethereum 2.0 network becomes fully functional. The launch of the new function may take place after the next hard fork.

Resistance levels: 3125, 3437.5, 3750.
Support levels: 3000, 2700, 2500.

Ripple technical analysis

Current trend
The XRPUSD is trading within a long-term descending channel, however, since the beginning of this month, there has been a corrective growth in quotations.

Currently, the price is testing the 0.91 mark (Fibonacci retracement 50.0%) and in case of consolidation above it, it will continue to grow to the upper boundary of the descending channel (1.0000 area) or to the 1.0742 level (Murray [7/8], Fibo retracement 38.2%). The key support zone for the bears remains 0.7812–0.7500 (Murray [4/8], 61.8% Fibo retracement). Its breakdown will give the prospect of the price returning to the area of annual lows of 0.5859 (Murray [2/8]) or to the level of 0.4883 (Murray [1/8]).

Technical indicators do not give a single signal: the MACD is increasing in the positive zone, but the Stochastic is preparing to leave the overbought zone and form a sell signal. In addition, the price chart has gone beyond the upper Bollinger Band, which also points out the possibility of a downward reversal.

Support and resistance
Resistance levels: 0.91, 1, 1.0742.
Support levels: 0.75, 0.5859, 0.4883.

ADAUSD technical analysis by Solid ECN Securities
Since the beginning of this month, the ADAUSD pair has been growing in line with the general market trend.

At present, the price has risen to the level of 1.1718 but cannot consolidate above it yet. The asset is in consolidation, waiting for more serious movement drivers. The key 'bullish' level is 1.2700. Its breakout allows growth to the levels of 1.47 and 1.5625. The breakdown of 1.0742, supported by the middle line of Bollinger bands, will ensure the resumption of decline to the levels of 0.9675, 0.8789, 0.7812.

Currently, the market is in a state of uncertainty: Bollinger bands narrows, as it happens before a significant price movement, the MACD histogram prepares to move into the positive zone and form a buy signal, but Stochastic reversed downwards.

Support and resistance
Resistance levels: 1.2700, 1.4700, 1.5625.
Support levels: 1.0742, 0.9675, 0.8789, 0.7812.

BTCUSD market insight by Solid ECN Securities

The decline of 'digital gold' may continue
Last week, the BTCUSD pair had ambiguous dynamics. At first, the price rose above the level of 45800 but then lost the gained positions, returning to the area of ​​42000.

Experts associate the movement of the cryptocurrency market with the release of fundamental American statistics. The rise in prices occurred against the backdrop of positive January data on the US labor market, illustrating the recovery of the national economy, and the decline was the result of poor January data on inflation.

This week, the market decline may continue if the January US PPI rises (data will be released on Tuesday), and there is 'hawkish' rhetoric in the minutes of the last meeting of the regulator (to be published on Wednesday). So far, department officials have not decided on the tactics of further actions and speak out both for and against a sharp increase in the rate, leaving investors in uncertainty.

Support and resistance
Now the price is at 42000. The consolidation below it allows a decline to 40000, 37500, 35000. The key 'bullish' level is 43750. Its breakout allows growth to 46875 and 50000.

The indicators do not give a single signal: Bollinger bands are directed upwards, the MACD histogram is stable in the positive zone, Stochastic is directed downwards but is entering the oversold zone.

Resistance levels: 43750, 46875, 50000.
Support levels: 42000, 40000, 37500, 35000.

ETHUSD
Technical analysis

The ETHUSD pair continues its upward correction against the medium-term downtrend.

Last week, the token price fell to the support zone of 2812–2930, the middle line of Bollinger bands, but this week, the growth resumed. The breakout of 3125 allows growth to the levels of 3300, 3575, 3750.

The key “bearish” zone is 2812.5–2930, the consolidation below which will allow the cryptocurrency to fall to the levels of 2500 and 2187.50, the lower limit of the ascending channel.

Technical indicators, in general, reflect the continuation of the upward trend: Bollinger bands and Stochastic reverse upwards, the MACD histogram is near the zero line, its volumes are insignificant.

Support and resistance
Resistance levels: 3125, 3300, 3575, 3750.
Support levels: 2812.5, 2500, 2187.5.

XRPUSD market insight by Solid ECN Securities

This week, the XRPUSD pair resumed growth after a downward correction towards 0.75 with primary targets at 0.91, and 0.9766.

At the moment, the key “bearish” level is 0.75, supported by the middle line of Bollinger bands. Its breakdown will give the prospect of developing a downward movement to the levels of 0.586 and 0.4883. Still, this option seems less likely since technical indicators signal the continuation of the existing trend: Bollinger Bands and Stochastic reverse upwards, the MACD histogram increases in the positive zone.

Support and resistance
Resistance levels: 0.91, 0.9766, 1.0742.
Support levels: 0.75, 0.5859, 0.4883.

Crypto market update by Solidecn

ETHUSD
Geopolitical tensions are a catalyst for price decline

This week, the ETHUSD pair continued to decline and is currently close to the 2500 mark. The cryptocurrency market as a whole is suffering losses amid the aggravation of the geopolitical situation around Ukraine.

Digital asset prices have gone down following the stock market, with which they have been actively correlating recently. This fact casts doubt on the claims of a number of experts about the possibility of using cryptocurrencies as 'safe haven assets'. Currently, investors prefer to go into more traditional gold, the quotes of which add value. The current situation signals that the current level of adoption of digital tools by business is not yet sufficient.

In general, the cryptocurrency sector has been declining since November last year, as bidders assume the beginning of a new period of 'crypto-winter'. In this regard, the comments of the co-founder of Ethereum Vitalik Buterin are interesting, he believes that in the end, a prolonged drop in prices can have a positive impact on digital assets. In a recent interview with Bloomberg, he said that the 'bearish' trend in the market allows you to get rid of weak projects, and also reduces the volume of short-term speculative trading.

Support and resistance
The price has reached the lower limit of the Murray trading range at around 2500, the breakdown of which will give the prospect of further decline to the levels of 2187.5 and 1875.

Technical indicators generally demonstrate the continuation of the downward trend: the Bollinger Bands and Stochastic are reversing down, and the MACD histogram is increasing in the negative zone. Stochastic's entry into the oversold zone does not exclude an upward correction up to the level of 2930, but it is unlikely that it will lead to a trend change.

Resistance levels: 2930, 3125, 3300.
Support levels: 2500, 2187, 1875.

Market update by Solidecn

S&P 500, component reporting forecasts pull the index down
The S&P 500 index is correcting down amid a significant decline in the bond market, trading at around 4288. 10-year US Treasuries shed 3.48%, falling from 1.927% to 1.863%, while 20-year conservative bonds fell 2.76%, from 2.268% to 2.246%.

Support and resistance
Index quotes are traded in a local downtrend, which might become a global one. Technical indicators are still in the state of an active sell signal: the range of EMA fluctuations on the Alligator indicator is expanding towards the decline, and the AO oscillator histogram is trading in the negative area forming new descending bars.

Support levels: 4215, 4000
Resistance levels: 4375, 4590

Crude Oil shows strong growth by Solid ECN

During the Asian session, WTI Crude Oil prices show a downward trend, consolidating near $93 per barrel. The current decline of the instrument is due to technical factors, while the fundamental picture is generally quite optimistic and provides additional support to quotes.

Quotes are supported by the fact that the dynamics of oil supply growth continue to lag behind aggregate demand against the backdrop of a rather conservative position of OPEC+. The cartel refuses to accelerate production growth, preferring to act according to a previously defined plan. In particular, in February, the alliance increased production quotas by 400K barrels per day. Meanwhile, several participating countries (for example, Venezuela and Iraq) cannot increase production to the permitted level due to insufficient funding for the industry and technical problems with increasing oil production.

Support and resistance
On the daily chart, Bollinger Bands steadily grow. The price range expands but not as fast as the 'bullish' sentiment develops. MACD reverses upwards, forming a new buy signal. Stochastic is more straightforward but is rapidly approaching its highs, indicating that the instrument may become overbought in the ultra-short term.

Resistance levels: 93.97, 95, 96.
Support levels: 91.73, 90, 89, 88.

ADAUSD continues to trade within the downtrend and today has reached the year’s lows around 0.7426.

At present, the price is testing the level of 0.7812 (Murrey [0/8]), and after the consolidation below it, the decline will continue to the area of ​​0.5860 (Murrey [–2/8]). In general, the downward trend in the market continues, which confirms the downward reversal of Bollinger bands and the increase in the MACD histogram in the negative zone. Exit of Stochastic from the oversold zone does not exclude corrective growth to the area of ​​1.0742 (Murrey [3/8], the middle line of Bollinger bands) but it probably will not lead to a break in the downtrend. Under these conditions, the continued decline in quotes seems to be preferable.

Support and resistance
Resistance levels: 0.9765, 1.0742, 1.1718.
Support levels: 0.7812, 0.6835, 0.5860.

ADAUSD, technical analysis

The growth of the ADAUSD pair continues for the second week in a row, adjusting to a long-term downward trend. Currently, the price has reached six-week highs around 1.1450.

The key for the 'bulls' is the 1.1718 mark. Its breakout will give the prospect of further growth to 1.285 and 1.465. In case of a breakdown of the 0.9765 level the decline may resume up to 0.781. In general, the potential for upward movement is still preserved, as evidenced by the upward reversal of the Bollinger Bands and the Stochastic, the MACD histogram increases in the positive zone, but the entry of the Stochastic into the overbought zone and the exit of the price chart beyond the upper Bollinger Band do not exclude the possibility of a decline.

Resistance levels: 1.1718,1.2850, 1.4650.
Support levels: 0.9765, 0.7810.

Let us see something about BTC.