Expected falls for the crypto market

Crypto market update: 21-27 september 2020.

Despite the generalised falls in the crypto prices this week (80% of them lost value), the BTC and other altcoins, excepting the ETH, are holding up well as the leading cryptocurrency has once again a solid support, trading at the time of this article at 10,700 USD. ETH is down - 4.8% in the last week compared to bitcoin which has fallen only -1.80%.
Source: blog.goodaudience.com

As it can be seen in the coin360 mosaic, very few values are green and most of them are having drops this week, however we can highlight positive movements in some cryptoassets such as ADA (Cardano +13.66%), BSV (+10.61%), Link (+10.52%), XEM (+7.65%), Monero (XMR +6.9%) among others.These increases are accumulative in the last 7 days.

Source: coin360

Analysts measuring crypto market sentiment using the Fear & Greed Index have determined that it has shifted to "fear" from "extreme greed" in one month. This index is determined using different parameters such as market volatility, trading volume, social media and market surveys. Below this is how it looks this interesting index. Last week this sentiment was neutral and this week it became negative although it is starting to recover in the this weekend.

Source: alternative.me

Despite these falls in the crypto prices and the feeling of fear in the crypto market, analysts think that these are expected and temporary corrections and continue to be positive in the medium term, expecting a significant upward trend (Bullish run) as they use very reliable technical indicators to make such a statement. These indicators are related to the BTC cryptoderivatives market, the operational leverage, a lower overheating and the mining power or “hashrate” of the crypto industry.

Indeed, the technical indicators of BTC support the idea of a new upward trend in the medium term after logical corrections, since the miners periodically have to sell their mined BTCs to collect profits, after which the BTC price recovers

Respecting the Etherium performance, it is one of the values that have experienced a greater correction, having a new support at 325 dollars and a resistance at 360 dollars. It is currently trading at $352 and this week it has lost -4.76%. As it can be seen, its price is very close to the resistance level and it seems that the bulls want to push the price up to this resistance, despite the correction experienced this week. However, bearish traders still have an advantage and can push the price below the $308 level. Possibly these falls are due to the expensive transaction fees that the Etherium network is suffering from especially in the DeFi submarket.

Our top 5 cryptocurrencies of this week, we have the following cryptoassets: Stratis (STRAT) (+7.34%), ADA or Cardano (+1.40% until September 25th), Waves (+0.34%), Monero or XMR (+0.22% until September 25th) and the Token Nexo with +6.61%.

However, values such as ADA and Monero continued to rise until September 27, accumulating higher increases as shown at the beginning of this article.

Source: Criptonoticias

1st) Stratis (STRAT): with an increase of more than + 7%, until September 25, and two days later reached up to +11.50% possibly due to the issuance of a new token in the Stratis blockchain that is called Strax, more focused on the DeFi platform and it will be distributed among the STRAT holders.

2nd) Cardano (ADA): With an increase of +1.40% until day 25, but two days later this this percentage was increased until a remarkable +13.66% according to coin360. This notorious increase may be due to the announcement of a new portal for developers, to access tools to implement new smart contracts, and use new decentralized applications, in addition they will be able to participate in spaces to collaborate with each other, share ideas by joining discussions and promote new projects.

3rd) Waves: with a subtle increase of + 0.34% up to 25, and at the end of the week it went up to +1.66%. Possibly due to the implementation of new links between blockchains and the availability of a greater set of tools for developers through the Gravity Hub system, which can be used as a testnet to exchange tokens in the Etherium blockchain.

4th) Monero (XMR): with a slight increase of + 0.22% until September 25th, reaching + 6.9% at the end of the week. Monero has announced a new software that makes the verifications faster because the transactions are smaller, speeding up the verification by 10% without affecting the security levels. Currently its price is almost 100 dollars.

5th) Nexo: this ERC20 token has had a remarkable performance by increasing its value by +6.61% until 25th September, reaching + 9.6% at the end of the week. The possible reason for this upward performance could be that the Nexo blockchain is among the top 50 tokens in the Crypto Valley of Switzerland and Liechtenstein, two countries that have a good legal framework for cryptos. Crypto valley is a hub for technological startups (for the creation of companies in the crypto technology industry). Nexo supports the Huobi Exchange’s stablecoin, the HUSD, linked to the USD.

In summary, we have seen how the cryptos in general have shown moderate losses, except for the leading altcoin, the ETH, and more than 80% have had this downward trend. Nevertheless as always the cryptoassets that stand out for having very dynamic projects and thanks to their technological developments, they manage to attract the crypto capital to make notable price increases in spite of the general trend. The BTC continues with medium and long term upward trend, although there are natural short term corrections in its price.