Bitcoin Cash, Litecoin and Ripple Daily Analysis – 31/01/18

Bitcoin Cash Slides Again

If investors thought that there was little to worry about going into the weekend, the general trend in the cryptocurrencies suggested otherwise, with there being plenty of apprehension at the start of the week.

Perhaps unsurprising considering the amount of airtime cryptocurrencies and the market in general received during the World Economic Forum last week.

Unfortunately, from an investor perspective, there are few red flags to pick out before the cryptomarkets get hit with another bombshell.

This week, U.S regulators have taken turn to shock the market, with the SEC filing fraud suits, with AriseBank.

To make matters worse, news also hit the wires that NEM’s coins, which had been stolen last week, have appeared on certain crypto exchanges for sale.

And if that wasn’t not enough to pull the cryptos deep into the red, then news of U.S regulators issuing subpoenas to Bitfinex and Tether did the trick, with questions arising over valuations and concerns over Bitcoin price manipulation.

While we had expected a downward move post the weekend rally, it’s been a dire week, with Bitcoin Cash down 18.26% since Monday’s open. Most of the declines came on Tuesday, with Bitcoin Cash sliding 14.23%, as the news wires began to churn out more negative news.

At the time of writing, Bitcoin Cash is down 1.96% to $1,442.6, recovering from an intraday low $1,402 hit at the start of the day, with any immediate recovery likely to remain on hold until the dust settles.

The cryptomarket is in panic mode and at some point, it’s going to be too alluring for investors to continue to sit on the side lines. It’s either going to be another slide or a few days of peace and quiet on the news front.

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Litecoin on the Ropes

Litecoin has managed to perform somewhat better than Bitcoin Cash through the first part of the week, with Litecoin down just 16.45% since Monday’s open.

Of greater concern for the Litecoin team will be today’s losses, with Litecoin down 2.81% to $159.63 at the time if writing, only a handful of the major cryptocurrencies seeing more significant declines.

For the day ahead, the negative sentiment is unlikely to be favourable for Litecoin, with the only good news for the Litecoin team being that it has managed to move back to the number 7 spot by market cap, with Stellar Lumens seeing more material declines in the recent sell-off.

There’s certainly no reason for things to get bullish through the day but, if Litecoin does make a move back through to $165 levels in the early part of the day, a move back through to $170 is possible, while profit taking will likely kick in well before touching the start of the week levels.

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Ripple’s Getting Close to sub-$1.00

Ripple saw the largest drop amongst the cryptocurrency front runners through the start of the week, with Ripple sliding 23.66% to Tuesday’s $1.0439 close.

This week’s intraday low $1.02675 is getting perilously close to a major support level at $1.00, below which Ripple could go into free fall.

At the time of writing, Ripple was down 1.92% to $1.0923 and, if things continue to go the way they have gone in recent weeks, it may not be long before Bitcoin Cash begins to compete for the number 3 spot by market cap.

Ripple found support at $1.03 this morning and having managed to pull back to $1.09 levels, a move back through to $1.1 could see Ripple’s sell-off ease, though there will need to be a quiet day ahead on the news front.

A fall back through $1.01 will test the psychological $1.00 level, which will certainly be a test for the investors that have decided to sit it out.

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