The second half of 2020 kicked off on a mixed note for the three major U.S. indexes. The Dow Jones Industrial Average (DJIA) went down 77.91 points (-0.30%) to close at 25,734.97. The NASDAQ Composite went up 95.86 points (+0.95%) to close at 10,154.63, and the S&P 500 went up 15.57 points (0.50%) to close at 3,115.86.
A coronavirus vaccine candidate being developed by Pfizer and BioNTech revealed that the drug created neutralizing antibodies. While the results were released online, they have not yet been reviewed by a medical journal. White House health advisor Dr. Anthony Fauci warned on Tuesday that if the outbreak continues at its current pace, the number of new daily cases could surpass 100,000 new infections per day.
Automatic Data Processing (ADP) and Moody’s Analytics said that private payrolls jumped 2.37 million in June. Payroll numbers for May were also revised to a gain more than 3 million from a loss of 2.76 million. The Institute of Supply Management said that manufacturing activity in the U.S. grew to its highest level since April 2019 and May’s sharp contraction.
As for the news within the crypto sphere, some of U.Today Crypto News’ headlines include a price analysis for XRP, Bitcoin (BTC) is inching closer to the $100,000 mark, and the two bullish signals for the price of Ethereum (ETH).
XRP’s Sideways Price Trend Continues Around $0.17
The price of XRP were under pressures from the bears yesterday morning. It was only in the morning that the XRP/USD pair were able to recover above the $0.175 support level. By the end of the day, the pair sank towards the $0.174 area.
Today’s trading is being achieved in small volumes, and if such low market activity persists, the price will continue to move in a lateral range. The upper border of this range will be the two-hour EMA55, and the lower border will be the weak $0.175 support level. An increase in pressure from the bears may lead to a retest of the strong $0.170 support level.
Looking at the 4H chart, XRP bounced off its support level at $0.1750, confirming pressure from buyers. Even though the coin is trading withing a triangle pattern and remains bullish, its trading volume has not increased. However, there is a high level of liquidity above the aforementioned level. In this particular case, the endpoint might be in the $0.1790 area, which buyers could reach in the next few days.
Looking at the daily chart, volatility is declining against the ongoing price drop. There is no buyer resistance as the trading volumes remains relatively the same. What is more, XRP is still within a falling channel and its next support level is at $0.1680. If the bulls cannot seize on the initiative soon and reach $0.18, then XRP will not reach the aforementioned price until mid-July 2020.
Bitcoin (BTC) Closer to $100,000 According to Stock-to-Flow Model
PlanB (@100trillion USD), the well-known cryptocurrency trader and analyst, published an update to the most popular Bitcoin (BTC) price model for the bulls.
According to PlanB, the second “red dot” of the fourth Bitcoin (BTC) epoch flashed today. These “red dots” show that the price of the king coin in the months following a drop in mining rewards.
Looking at Bitcoin’s past performance, explosive upswings by the flagship cryptocurrency typically start in the orange and yellow zones. However, with the maturation of the cryptocurrency markets, the cycles are smoothing out the wrinkles. This trend may contribute to the surprisingly low volatility by the king coin.
This fact was mentioned by PlanB, who noticed that the volatility refuses to grow with the ongoing market recession. PlanB also admitted that the position of second red dot will be adjust in late July 2020.
As previously covered by U.Today Crypto News, PlanB insists that the ongoing cycle may reach $100,000, possibly even $900,000. The stock-to-flow ratio, which is derived from the current production and overall Bitcoin (BTC), surpassed the scarcity of Gold (XAU).
Even though PlanB’s calculations are heavily criticized by even members of the Bitcoin (BTC) community, the $100,000 price target has received support from Charles Edwards and his more conservative Energy Value Theory.
Two Bullish Signals for Price of Ethereum (ETH)
Qiao Wang, a top-notch macro analyst and investor, dismissed some delusions about popular Ethereum (ETH) price catalysts and indicated the factors that could drive the altcoin upwards.
According to Wang’s tweetstorm, network characteristics are seen as the main factor the drive the price of Ethereum (ETH). Even though the “network effects” of Ethereum (ETH) look healthy enough to win a smart contract war, this doesn’t directly boost the price.
Instead, Wang believes that the two most obvious factors that would catalyze the price of Ethereum (ETH) are the following:
- Transition to Proof-of-Stake (PoS) (ETH2)
- Fixed monetary policy
With the PoS rollout, a huge chunk of circulating Ethereum (ETH) will be locked up by stakers. A stable yield from the validation process is the direct motivator for people buying and holding Ethereum (ETH).
Should this be accompanied by a proper monetary policy, then such progress would definitely attract people to Ethereum (ETH).