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Bob Mason
Cryptocurrencies

Bitcoin Cash going nowhere for now

Bitcoin Cash continued to test $2,300 support levels through the 2nd half of Thursday and the early part of today, with the sideways moves coming from a relatively silent news feed.

The lack of Bitcoin chatter has certainly left the Bitcoin clan relatively flat, with Bitcoin Cash up just 0.49% to $2,361.1 at the time of writing.

The only good news was China’s central bank, the PBoC, killing of rumours that there was going to be a ban on Bitcoin mining.

Through the first week of the year, the rumour mill has certainly been active and just goes to show how key players in the cryptomarkets are able to manipulate prices through the chatter.

With Ethereum having hit $1,000 for the first time and some of the other major cryptocurrencies on the move, the lack of direction will be an issue for Bitcoin Cash investors.

To avoid testing $2,300 support levels for a 2nd day running, Bitcoin Cash will need to break out beyond $2,450, with this morning’s $2,487 spike failing to drive a rally up to $2,500 and beyond.

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Litecoin desperate for a rally

There’s been very little for Litecoin investors to cheer about going into the New Year, with any attempts to break back through to $300 levels ending in Litecoin pulling back to its current $230 – $240 ranges.

Market consensus is that Litecoin remains particularly undervalued at present and that it’s due for a rally up to $400 levels.

While Bitcoin has seen investor interest diluted as a result of the exponential gains being enjoyed elsewhere, Litecoin has also fallen out of favour, with there being a lack of clarity on how exactly Litecoin will be able to compete with Bitcoin as an alternative to fiat money.

Bitcoin is already being accepted by vendors in cryptohavens and the acceptance comes in spite of Bitcoin’s shortcomings, which include particularly slow transaction times. Litecoin certainly addresses the issue, but until the team make some inroads we will expect attention to be placed elsewhere.

At the time of writing, Litecoin is up 1.29% to $242, with a move through to Tuesday’s $262 high needed for a more sustained rally through to $300 levels. Any prolonged move within the current ranges and Litecoin could be looking at sub-$200 levels in the near-term.

Litecoin Chart by Trading View

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Ripple Takes a Hit

Investors are starting to get a sense of what truly drives the cryptocurrencies and one of the key drivers is inclusion on the more prominent exchanges.

The crypto-rumour mill had played its part in Ripple’s stunning run through to a record high $3.34989 on Thursday, as investors speculated on Ripple’s inclusion onto the Coinbase exchange. The exchange’s announcement that it would not be adding any cryptocurrencies onto its exchange on Thursday afternoon saw Ripple fall back down to $2.85 by the close.

It’s been a choppy start to the day, by Ripple standards, with Ripple up 4.92% to $2.725 at the time of writing, recovering from an intraday low $2.45.

While Coinbase has talked down the rumours of Ripple’s inclusion, investors will be betting that such a move will be likely in the near future, particular when considering Ripple’s rise in prominence at the end of the year. The speculation will likely continue providing support, with Ripple unlikely to fall back down to earth anytime soon.

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