Bitcoin Cash, Litecoin and Ripple Daily Analysis – 08/03/18

Bitcoin Cash Breaks the Trend

It was a dark day for the cryptocurrencies on Wednesday. While the global financial markets were stressing over the prospects of a trade war, the cryptocurrency market took a hit on Wednesday, following a statement released by the SEC stating that if a platform offers the trading of digital assets that are securities and operates as an exchange, as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.

The news may ultimately be a positive for the cryptomarket, but concerns over further regulations in the near future was the likely negative from an investor perspective.

Bitcoin Cash had already been on the back foot ahead of the news hitting the wires, but certainly not looking at sub-$1,100 levels. Bitcoin Cash fell through all of its support levels to an intraday low $1,031, before recovering to an end of day $1,090.9 to mark a 9.38% loss for the day.

It’s been a little better for Bitcoin Cash this morning, up 0.5% to $1,097.2 at the time of writing. Whether there’s any major rally remains to be seen however, with investors possibly having overreacted to the SEC statement on Wednesday.

For the day ahead, a move through to $1,100 levels would support a run at Bitcoin Cash’s first major resistance level of $1,197 though much will depend on the news wires this afternoon, with investors likely to be wary of what else the SEC announces before the weekend.

With a first major support level of $1,008, there’s got to be some quite dire news for Bitcoin Cash to test support levels today.

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Litecoin in the Hands of the Bears

Litecoin joined the rest of the cryptocurrencies in the red on Wednesday, though the day’s 5.56% lose was certainly not among the worst, with Litecoin having already turned bearish well before the SEC issued its Wednesday statement.

Litecoin peaked last Saturday morning and it’s been downhill ever since, with the roll out of LitePay providing little support. Litecoin fell through its first and second support levels on Wednesday afternoon to hit an intraday low $173.82 on Wednesday, before recovering to a closing $185.7.

The last time that Litecoin hit sub-$180 levels was in December, in the run up to the December rally that saw Litecoin hit an all-time high $251.9.

At the time of writing, Litecoin was down 1.45% to $183.7, with the bearish trend unlikely to reverse through the morning as investors continue to consider the SEC statement and what lies ahead.

A fall through to sub-$180 levels could see Litecoin test its first major support level of $173.2, with Litecoin’s first major resistance level of $199 likely to be too much of a gap for Litecoin to make up through the day.

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Ripple Looks for Support

Ripple investors will perhaps be thanking their lucky stars that Coinbase did not include Ripple’s XPR onto their exchange, with Wednesday’s cryptomarket slump likely to have reversed any gains that may have been made through the early part of the week.

For some it may be of little comfort however, particularly for those who may have chased the rally, entering at $1.00 levels on Monday afternoon.

Ripple’s XRP fell a whopping 28.6% from Monday’s $1.0901 high to Wednesday’s $0.77832 low, with the combined effects of Coinbase declaring that Ripple’s XRP would not be included and the SEC statement doing the damage.

The only good news for Ripple investors was the fact that Ripple’s XRP eventually found support below its second support level and managed to recover to $0.8472 by the close.

Sentiment has not improved this morning, with Ripple’s XRP was down 0.56% to $0.84705 at the time of writing,

Holding on to $0.80 levels will be key through the day, with any fall back through to sub-$0.80 levels likely to test its first major support level of $0.7779 and quite possibly lead to a fresh March low.

With Ripple XRP’s first major resistance level sitting at $0.9169, moving through today’s intraday high $0.8786 will be needed to support a run at $0.90 levels, though such moves look unlikely today.

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