Crypto Market Review, Nov. 18

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Arman Shirinyan

XRP is forming interesting patterns that traders and investors should look out for


  • Another triangle on XRP
  • Ethereum is showing a lack of momentum

The gradual recovery of the cryptocurrency market after the FTX implosion has turned into a prolonged consolidation in which most assets are moving in the neutral price range. But range trading often drives the growth and appearance of various chart patterns.

Another triangle on XRP

After a failed breakout back on November 4th, XRP fell below the previously formed trading range, thus losing almost all of the gains it had in September and October. With the lack of new growth factors and some success in court, XRP has lost most of its foothold on the market and returned to the price level we saw before the price spike.

Fortunately, XRP’s freefall stabilized after the cryptocurrency reached a sufficient price level of $0.37. After that, consolidation began. The asset has rallied more than 7% to its value after coming down to $0.33 and is now forming an ascending triangle pattern that will most likely lead to a volatility mirror.

XRP chart

Unfortunately, the chart pattern does not necessarily indicate that XRP will move upwards following volatility spikes in the market. Instead of a rally, we may see a continuation of a downtrend, especially if the market falls into an even deeper downtrend.

At the same time, we should note a slowly decreasing volume, which is a sign of a continuation of consolidation and scope. If the trading volume returns to pre-pump levels and XRP does not break, movement towards around the $0.34 price level will be the most likely scenario.

Ethereum is showing a lack of momentum

Despite the fact that Ether showed the market a considerable degree of resilience against massive stress and fear, Ether showed us nothing special after the dust settled around FTX. Some experts argue the main reason for that could be investor fears caused by a potential series of liquidations that will take place after the liquidation processes of numerous hedge funds and institutional investors have emerged.

Jump Crypto, FTX and other companies have been major holders of Ethereum, and they will have no choice but to liquidate their assets in light of recent events. By dropping hundreds of millions of Ethereum on the market, the most likely outcome will be the underperformance of the industry’s second largest asset.

Despite the rock-solid liquidity of the asset, the lack of inflows into the market will most likely cause a temporary drop in liquidity and local crashes until market makers find a way to cover the existing hole in the market.

Fortunately, the deflation of the asset and indefinitely locked Ethereum in strike contracts is helping Buterin’s coin to avoid much of the selling pressure, and it will most likely continue to move sideways until fresh funds hit the market.

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