Monthly Cryptocurrency Market Update; Consolidation Is In Effect

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Contents

Monthly Cryptocurrency Market Update; Consolidation Is In Effect

The Cryptocurrency Market Is Consolidating

The cryptocurrency market has had an impressive run higher this year. Most coins count their gains in the triple digits and there is reason to believe the run is not over, bigger gains are on the way. There are several drivers for the rally but the one I see as most significant is the halvening. The halvening is when the block reward for a proof-of-work blockchain is cut in half. What that means is that miners earn half as much per coin after the halvening as before it, a situation that increases the value of all tokens of the same variety.

In our case we have not one but two halvenings. The first is with the Litecoin blockchain. Litecoin is arguably the most important Bitcoin fork and set to halve its reward in under 30 days. The target ETA data is August 5, 2020, the block reward will be cut from 25 to 12.5 coins. While the halving doesn’t realistically improve the value of all LTCs equally, it does make the market less liquid and encourages hoarding of coins. That is what will make the value of LTC increase. As tokens become scarce and the market expands the supply/demand imbalance will underpin long-term price gains. And there will be another halvening in 840,000 blocks, and then another, and another.

The price of Litecoin has been one of this years biggest movers. The coin has risen 545% from the low to the recent high and could easily double itself again. The coin has broken above a key resistance on strong volume, held the level for over a month and consolidated at a new support. Price action is below the short-term moving average which is something I don’t like but that is offset by indications of support in the MACD and stochastic. Both the indicators are set up to fire a rebound/reversal signal, the catch is that they’re still bearish and could lead the coin down to the stronger support level. Support looks to be near $120, it might actually be closer to $106. In either event, a bounce from support is the signal to buy.

Bitcoin’s halvening is a little further off, just over 300 days, but an equally strong mover of prices. In fact, once the general market rally fueled by LTC’s halvening cools off the BTC rally will be ready to begin. When Bitcoin halves its reward will fall to only 6.25 coins and is not the first time to happen. Bitcoin’s price is consolidating around the $11,000 level but may retest the $10,200 region before moving higher. The good news is that indicators are much less bearish, stochastic is weakly bullish, and suggest the next phase of the rally is close at hand. The token needs to cross the $12,000 resistance level, when it does a retest of $14,000 will be next. When that breaks Bitcoin is likely to hit $15,000 very quickly and $20,000 soon after

Ripple Price Weekly Forecast: XRP/USD steers a turnaround to $0.30

The entire cryptocurrency market led by Bitcoin (BTC) ended last week in losses and also kicked off this week’s trading in acute declines. The bulls across the board scattered into hibernation, allowing the sellers to have not one but several field days. The bleeding cryptocurrencies left most investors discouraged amid fears that the Coronavirus, COVID-19 was fast escalating into a global pandemic with increased infections outside of China and the fact that little progress has been made towards finding a cure or vaccine.

XRP/USD currently trading at $0.2424, has recovered significantly from a devastating dive to $0.2250. The recovery is in tandem with Bitcoin price surge above $9,100. The market is relatively bullish on Friday, ahead of the weekend session. Ripple price is trading 1.15% higher on the day while volatility remains high.

Tezos (XTZ) has been among the best performers on the crypto market as far as the top ten cryptoassets are concerned. The crypto has surged over 18% from the lows traded in February at $2.5250. XTZ/USD has a market value of $3.21 while still nurturing a bullish momentum that could eventually hit highs above $3.3.

Cryptocurrency Industry Overview: Ripple ‘dumping’ XRP to remain profitable

According to Ripple’s chief, Brad Garlinghouse, the company is unlikely to remain profitable without the monthly sales of XRP tokens. Ripple owns more than half of the pre-mined supply of XRP. The company offloads the coins it owns and sells them via an over-the-counter platform to institutional clients. The move continues to be criticized by many including XRP holders. Ripple has been blamed for flooding the market with XRP tokens that stifle performance against its peers. However, Garlinghouse recently told the Financial Times that the sales are necessary for the company to stay in the green.

We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.

Ripple’s business model has been showered with a lot of criticism in the sense that it hurts XRP price. Unfortunately, with billions of coins still in Ripple’s escrow wallet, the situation is unlikely to change in the near future.

RippleNet cross-border payments expand the UAE

The National Bank of Fujairah PJSC (NBF), a United Arab Emirates-based bank has this week announced that it will integrate Ripple’s RippleNet platform to settle cross-border payments for its customers. The service will also support NBF’s partnership with India’s IndusInd Bank to serve customers in India. NBF is positive that RippleNet will help stimulate and enhance the payment experience for the customers.

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As for Ripple, the partnership means adoption for its services as well as expansion into new markets. Eventually, adoption of Ripple blockchain services will have a positive ripple effect on the price of XRP.

XRP Ledger could soon support asset-backed crypto tokens

Ripple is reported to be working towards the support of asset-backed digital tokens on its XRP Ledger. The move was revealed by the company’s CTO, David Schwartz who stressed that the support will be very different from what is already offered by other platforms in the industry.

One of the features that I think is very exciting is a feature that would allow people to launch… essentially assets pegged to some external value. Features similar to that exist on other systems but the interesting thing about this is that the liquidity is guaranteed by the ledger mechanics.

Ripple Price Forecast: XRP/USD navigates a turnaround

Ripple price is focused on ending this week in the positive despite starting on a rough patch. For starters, the price has corrected above a short term descending channel, which has contributed immensely to the gains made on Thursday and Friday. XRP/USD is also trading above the 38.2% Fib retracement level resistance turned key support at $0.24119.

Gazing into the near future, Ripple will require an extra dosage of bullish pressure to be able to rise above the resistances posed by the 200-day SMA at $0.25216 and the 50-day SMA at $0.25861. More seller concentration zones are expected to hinder XRP/USD recovery at $0.2600 (50% Fibo) and $0.2800 (61.8% Fibo). According to the RSI, XRP/USD could remain relatively bullish in the sessions heading into the weekend, however, very minor rapid movements north are expected. In the event of a reversal, other support areas include $0.2300 and $0.2200, respectively.

XRP/USD daily chart

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Frequently Asked Questions

How are the prices calculated for the various cryptocurrencies?

Please refer to the Market Data section of the methodology for detailed information on this topic.

What is “Market Capitalization” and how is it calculated?

Market Capitalization is one way to rank the relative size of a cryptocurrency. It’s calculated by multiplying the Price by the Circulating Supply.

Market Cap = Price X Circulating Supply.

What is the difference between “Circulating Supply”, “Total Supply”, and “Max Supply”?

Circulating Supply is the best approximation of the number of coins that are circulating in the market and in the general public’s hands.
Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned).
Max Supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.

Why is the Circulating Supply used in determining the market capitalization instead of Total Supply?

We’ve found that Circulating Supply is a much better metric for determining the market capitalization. Coins that are locked, reserved, or not able to be sold on the public market are coins that can’t affect the price and thus should not be allowed to affect the market capitalization as well. The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing.

What is the difference between a “Coin” and a “Token” on the site?

A Coin is a cryptocurrency that can operate independently.

A Token is a cryptocurrency that depends on another cryptocurrency as a platform to operate. Check out the crypto tokens listings to view a list of tokens and their respective platforms.

What is the criteria for a cryptocurrency or exchange to be listed on CoinMarketCap?

Please refer to the Listings Criteria section of the methodology for detailed information on this topic.

Why are markets with no fees excluded from the price average and total trading volume?

When no fees are being charged at the exchange, it is possible for a trader (or bot) to trade back and forth with themselves and generate a lot of “fake” volume without penalty. It’s impossible to determine how much of the volume is fake so we exclude it entirely from the calculations.

How do I purchase cryptocurrency?

CoinMarketCap reports on the trading activities of thousands of markets but does not directly sell any cryptocurrency. The best way to find where to buy is by looking on the markets section for the cryptocurrency. For example, to find where to buy Bitcoin, you can look at the markets section for Bitcoin.

In what time zone is the site based?

Data is collected, recorded, and reported in UTC time unless otherwise specified.

At what time is the 24 hour % change based?

It’s based on the current time. It’s a rolling 24 hour period.

Why are you listing [insert random cryptocurrency]? It’s clearly a scam!

Nearly every cryptocurrency has been called a scam at some point in its lifetime. We’re not here to judge the merits of any cryptocurrency, but we provide the best tools for you to make your own conclusions. As long as it meets the listing criteria, it’s eligible to be on the site.

Why aren’t you listing [insert random cryptocurrency]?

While we strive to add every single cryptocurrency in the universe, it’s virtually impossible to list everything. Listing cryptocurrencies is largely a manual process that takes time and resources to ensure the accuracy of our data. Please refer to the Listings Criteria section of the methodology for detailed information on this topic.

Do you offer an API for your data?

Am I allowed to use content (screenshots, data, graphs, etc.) for one of my personal projects and/or commercial use?

You may use the content for academic or journalistic use provided that you cite coinmarketcap.com as a source. Please refer to the Terms of Use for the website.

Why does a question mark sometimes show up for the circulating supply and market cap of a cryptocurrency?

In order to ensure accurate market cap rankings, we work closely with teams and developers to verify supply details on their respective blockchains. If a question mark shows up, it means that we have not sufficiently verified the circulating supply and resulting market cap yet.

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