Bitcoin took an important step towards completing the correction that prevented the coin's quotes from growing. Major altcoins reacted very cautiously to this positive shift. Cryptocurrencies continue to fluctuate in tight ranges, despite the nominal growth of the market. Over the past day, the total capitalization of all cryptocurrencies increased by 7%, to $1.6 trillion. However, we can conclude that this was a win back of a weekly fall.
The indicators of the main altcoin finally said goodbye to the safe mark in the region of $2,500. The coin was actively recovering positions after Friday's fall, but was affected by the local decline in bitcoin. As a result, ETH indicators sank to $2,300, from where the restoration of positions began. On the evening of June 13, ethereum managed to overcome the $2,500 mark, but market pressure knocked the coin's indicators to $2,460. Cryptocurrency has risen in price by 4.5% over the past day. However, daily trading volumes remain extremely low, fueled by increased interest in bitcoin. The local dynamics of changes in quotes also remain negative, which indicates a slight advantage of bears in the area of $2,470 - $2,500. The asset is trying to find the ground under its feet, but negative statistics with historical implications can prevent this. As of June 14, over 23% of all ETH coins ($62 billion) are in smart contracts. A similar thing happened in 2016 when the decentralized autonomous organizations (DAOs) collapsed on the ethereum blockchain. Such an analogy alarms investors at the current stage, and therefore it is not worth counting on the rapid growth of altcoin.
The Ripple token also fluctuates within the usual ranges and shows no prerequisites for growth. The cryptocurrency has settled at the February low of $0.86 and has been holding it for more than a week. Considering the horizontal charts of the asset, we can say that strong support has formed at the level of $0.86. When approaching higher rates, the crypto coin begins to roll back. Over the past day, the asset has risen in price by 4%, having restored the usual values, however, the current volumes of daily trading and the local dynamics of price changes indicate that the cryptocurrency is not ready for growth. The market pressure is too great and the demand is low due to the activity of bitcoin.
LTC, which is around $170, demonstrates similar problems. The cryptocurrency showed a steady rise to the $170 mark, but failed to gain a foothold above the safe mark. Litecoin formed the current support level at $166. In the near future, the coin will not be able to get close to the important mark of $190. The current market situation and low demand for cryptocurrency do not leave any visible prospects for it in the near future.
The weekend ADA reading tested an intraday low of $1.36. However, the coin confidently won back the fall, having risen in price by 6.5% in 24 hours. As of 12:00 UTC, the asset is quoted at $1.53, however, the coin was covered by a local wave of market pressure. The main reason for optimism around the altcoin was the ability to launch smart contracts on the Alonzo network on the ADA blockchain. In the long term, this will become a clear advantage of the coin, since the prospects are already visible now. During the test launch of the Alonzo network, the cryptocurrency has risen in price by 30%. The final product launch is expected in July, making ADA one of next month's top assets.
Despite the success of bitcoin, the altcoin market is still in the stage of correction. Coins cannot overcome difficult thresholds due to market pressure and mixed news background. For example, the Indian crypto exchange WazirX was suspected of money laundering, and the negative from New York, where mining was banned for three years, has not yet been played out. At the same time, the large US bank State Street has launched a cryptocurrency division, and the asset management company Victory Capital will create a fund for investments in cryptocurrencies. Important personalities for the industry also spoke positively about cryptocurrencies. For example, the Minister of Finance of the Netherlands opposed a complete ban on cryptocurrencies, and Elon Musk said that with the transition of 50% of mining to renewable energy sources, Tesla will resume selling products for bitcoins. The news background is still ambiguous, however, a new cycle of interest in cryptocurrencies can be clearly traced. The market is gradually accumulating volumes of coins and, soon, a bullish cycle will begin.
The material has been provided by InstaForex Company - www.instaforex.com