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Crypto Market Review, November 14

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Arman Shirinyan

Market is slowly recovering after short term crisis we had few days ago

The dynamic on the cryptocurrency market is slowly recovering as the majority of assets return to normal, institutional investors count their losses and fear no longer drives sentiment.

XRP’s expected bounce

At one point, XRP’s behavior on the market looked worrisome, considering the failed reversal attempt on November 11 and the continuation of the downward trend over the weekend. However, after reaching the strong support level for the second time, bulls pushed the coin’s value upwards and avoided a further collapse.

The aforementioned resistance is located at the lower boundary of the trading range XRP entered in July. Previously, the coin successfully rebounded from it at least four times, making the threshold one of the most resilient supports on the chart overall.

XRP chart
Source: TradingView

The decline to the aforementioned support level was followed by the decline of the relative strength index to the oversold range, raising the bounce possibility. As for now, the indicator remains in the neutral zone, allowing a move in any direction.

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In the event of neutral market performance, XRP and other altcoins should return to pre-FTX crash price ranges. Unfortunately, Bitcoin’s movements today could become a reason behind XRP’s loss of traction on the market.

ADA faces problems

While XRP is successfully bouncing back from the above support level, Cardano is struggling to get enough support from investors to enter a significant recovery rally and is currently showing an insignificant recovery of 1.3% as opposed to XRP’s 9%.

The most likely reason behind the lack of strength on ADA is the poor state of the asset on the market in general: Cardano is notorious for having one of the lowest profitability figures among the top 100 on the market and relatively low volatility in range limits.

All of the aforementioned factors are pushing investors away from Cardano and causing a shortage of inflows into the asset, making a full-sized bounce for ADA impossible in the current market conditions.

Steady recovery of market

Fortunately, the cryptocurrency market is seeing a gradual recovery, according to the total market cap metric. In the last three days, more than $40 billion has returned to the industry, so it’s safe to say that investors are getting some positivity back, and the full recovery of the industry to the state it was in before the FTX crash is possible.

Amidst the crisis, the positive CPI inflation data pushed high-risk markets higher, while Bitcoin struggled to get through the selling pressure from FTX and its investors. After the dust settles, we may see an unexpected yet positive BTC which will be a delayed reflection of the CPI effect.

At press time, Bitcoin has once again faced a sudden wave of selling pressure on the market and is currently struggling to stay in the $17,000 price range, which is a vital foothold for the continuation of the rally above the $20,000 price level.

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