Following Ripple's victory over the SEC, numerous cryptocurrencies witnessed a 10-20% price increase yesterday. Here's an examination of the market dynamics for Bitcoin (BTC) and Ripple (XRP).
Bitcoin (BTC)
Bitcoin responded favorably to Ripple's recent legal victory, which confirmed XRP as a cryptocurrency rather than a security. This caused Bitcoin to peak at its yearly high of $31,800, though it's still in a period of sideways movement. The prevailing resistance zone is set between $31,600 and $32,600.
Should Bitcoin undergo a correction, the first target for sellers would be the $29,500 support level. Below that, buyer orders are likely to be clustered within the $28,700-$29,200 and $26,800-$28,000 zones.
Cryptocurrencies often grow on positive news, even without any correctional movements. Therefore, it's also feasible for Bitcoin's uptrend to continue without revisiting local lows. In such a scenario, it would make sense to see Bitcoin consolidate above the current resistance zone and make strides toward the $34,700 resistance level.
BTC chart on the H4 timeframe
Ripple (XRP)
Ripple's victory over the SEC in a lawsuit has sparked a strong response. In just 5 hours, XRP skyrocketed by 90%, boosting the project's market cap by $15 billion. The asset is currently ranging between the support zone of $0.648-$0.740 and the resistance zone of $0.816-$0.874. The most likely scenario is a continuation of the uptrend with a retest of $0.930 and a potential reach toward the significant $1.00 benchmark.
Even in the event of a correction, the chances of XRP returning to the point from where it began its explosive rise yesterday ($0.47) seem exceptionally low. Nevertheless, a correction could intensify, making it entirely possible for the asset to test the support zone of $0.540-$0.610.
At the moment, XRP's price is mainly governed by fundamental factors, which implies that technical analysis may be somewhat imprecise. Traders should keep this in mind when planning their strategies.
XRP chart on the 15m timeframe
XRP's victory might have the most significant impact on other altcoins like SOL and MATIC, among 12 other cryptocurrencies. These were classified as securities by the SEC just a month ago. Currently, there is practically no legal basis to regard them as such, thus making any further lawsuits unnecessary. This shift could potentially usher in a concentrated altcoin rally and reduce Bitcoin's dominance in the market.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNcrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
