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07.05.202118:39 Forex Analysis & Reviews: ETH takes a break, XRP and LTC approaches important marks: reasons and forecasts

Company does not offer investment advice and the analysis performed does not guarantee results.
The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

The cryptocurrency market has been on the rise over the past few days. However, this is largely the merit of Ethereum and several other altcoins. Major cryptocurrencies, like bitcoin, fluctuate within narrow corridors. Taking into account the ambiguous dynamics of changes in quotes over the past day, the total capitalization of the cryptocurrency market practically did not change and remained one step away from $2.5 trillion.

In this recent rally, the main altcoin has hit its all-time high twice. As of May 7, Ethereum reached the $3,600 mark, and the total asset capitalization exceeded $406 billion. At the same time, the share of cryptocurrency in the market also reached a record high of 16.3%. Despite all the positives, the daily trading volumes over the past 24 hours indicate a certain decline in interest in ether. However, do not forget that the asset is in an intermediate stage between two important updates. This suggests that local pauses and corrections, without significant external factors, will not stop the upward trend of the cryptocurrency. Ethereum's new growth cycle is also evidenced by the fact that in recent days the number of coins on the main crypto exchanges has significantly decreased. On the eve of the weekend and the close of classic markets, this means a significant reduction in selling pressure, which was on the asset. Thus, the ETH/USD pair may sink a little in terms of indicators, but with a high probability, it will return to growth as early as the weekend and will be able to get close to the $3,700-$3,800 mark.

Exchange Rates 07.05.2021 analysis

XRP token shows slightly different dynamics. The asset tried to overcome the difficult milestone in the region of $1.60 and managed to do it. This is primarily due to the growing volume of daily trading ($15 billion), which, among other things, indicates a certain level of confidence on the part of investors. The Ripple token should wait for the next positive signal from the courtroom to get close to the historical maximum. However, the positive outcome over the past 24 hours suggests that the asset may swing to the $1.8 mark as early as the weekend. As of 12:00 UTC, the cryptocurrency is quoted at $1.67 and may experience problems, around $1.7, as it was on May 6. Then the asset fell to $1.6, which turned out to be a rather painful fall.

Exchange Rates 07.05.2021 analysis

Litecoin's situation is very similar to bitcoin's problems. Both cryptocurrencies are in safe positions, where they have significant market support, but cannot overcome an important psychological barrier to start growing. Throughout the week, the LTC/USD quotes fluctuated, but if you look at the chart for May, it becomes obvious that, despite all the problems, the asset showed an upward movement.

Exchange Rates 07.05.2021 analysis

The news background is overgrown with positive announcements, which is an extremely important signal ahead of the weekend when the classic markets will close. For example, it became known that the Gemini crypto exchange began cooperation with payment giants MasterCard and WebBank to issue a credit card with a cashback option in cryptocurrency. The new product will be available to all US citizens. In addition, the negative situation with cryptocurrencies in India got off the ground. An internet startup association has sent a project to the government of the country to regulate crypto assets without completely banning them. Another good news was the development by Citigroup of services for transactions with cryptocurrencies.

Given the positive news background, minimal fluctuations in major digital coins, as well as the largest withdrawal of assets from crypto exchanges in recent years, a weekend rally can be expected. Without market pressure, cryptocurrencies can try to overcome difficult price barriers, and some even get close to historical marks.

Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

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