The crypto market’s steep selloff over the last few days has driven the total market capitalization of all cryptocurrencies from a high of $294.9 billion to lows of $249.1 billion this week. That’s a drop of over 15 percent in less than five days.
As a result, many coins – including large-caps – plummeted close to crucial support areas before enjoying a moderate recovery on Thursday.
The silver lining from the downturn is that it demonstrated that bulls are willing to defend their territory, even in battered cryptocurrencies like Ripple (XRP), Bitcoin Cash, and EOS.
Ripple had a perfect opportunity to break out of accumulation and start its bull market on June 22 when market participants pushed the price above range resistance of $0.46. All the bulls needed to do was stay above that level for a few days to trigger the fireworks.
Unfortunately, there was no follow-through, and the failed breakout emboldened bears. This triggered a massive selloff that pushed the price to as low as $0.2825 on July 16.
The strength of the selloff was also its weakness. The steep drop to support of $0.29 put the market in oversold territory. Bulls have the chance to take advantage of this bearish exhaustion.
Just like Ripple, Bitcoin Cash suffered a deep retracement after printing a 2019 high of $517.20 on June 22. The ensuing waterfall event drove the market to as low as $255.10 on July 15. That’s a nosedive of over 50 percent in less than a month.
As expected, Bitcoin Cash is respecting our range support of $300. This is a fairly easy call to make considering that the 200-day moving average is acting as support around that price area. In addition to that, the market is flashing oversold signals on the daily RSI.
For Bitcoin Cash, consider buying as close to $300 as possible if you want to play the bounce. The targets to look out for are $407.50 and $515.
Among Ripple, Bitcoin Cash, and EOS, the last coin suffered the worst beatdown. The cryptocurrency plunged from a 2019 high of $8.6503 on May 31 to lows of $3.30 on July 16. That’s a whopping loss of over 61 percent in a couple of months.
The market may look extremely bearish right now, but we have reason to believe that the worst is behind us.
For starters, EOS is flashing oversold readings on the daily RSI.
More importantly, bulls are defending support of $3.60. Back in March of this year, bulls used that price area to establish a base that would eventually launch EOS above $8.00. Thus, it is not surprising that bulls are fighting hard to keep control of the support.
If you’re interested in this market, consider buying near the support of $3.60. Target prices are $5.225 and $6.85.
The crypto pullback has driven large-cap coins close to key support areas. Fortunately, bulls are making their presence felt and protecting their territory.
With Ripple, Bitcoin Cash, and EOS showing oversold readings, bulls who see the market moving higher in the near-term could easily find this an opportune time to buy the dip.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.
Last modified: July 6, 2020 9:18 AM UTC