Volatile markets amid a stronger dollar

Fundamental Data

The crypto market remains volatile. With the current correction in the equity market the correlation between both sectors should be in focus as well. While Bitcoin has been able to defend the USD 60,000 price level, altcoins continue to behave differently.

In an attempt to reorganize the business structure, the Ethereum Foundation is cutting its workforce. About 20% of their staff had to leave the company, which does not come with big surprise. Recent complains pointed out that the company does not do enough in terms of publicity and support for the ETH- price. At the same time the foundation will now face new competition. Former Ethereum researchers founded Ethlabs. The company aims to move forward with new developments in particular in for the institutional sector. The demand for ETH by businesses and financial institutions keeps rising.

Meanwhile the deadline for a MiCA license in the Eurozome comes closer. Ripple secured a license before the deadline on the first of July. Binance, on the other hand, pulled out and did not apply for such license. Rumors state, that the company might have gotten rejected in the end and that they likely wanted to save face.

Overall, losses in the crypto sector remain imminent. The second quarter will likely also end trading lower as the overall market sentiment continues to remain weak.

Technical Analysis

BTC – Bitcoin is trading at USD 60,123 and has been able to finish last week above the psychological price level. Whether the positive trend will now continue depends on the upcoming resistance zones.

BTCUSD daily chart

A break above 62,000 and 63,000 might eventually pave the way for a renewed uptrend in the market. Though, in general the sentiment remains weak with the pressure to the downside still being present. So far the market showed a decline in general. Recent technical resistance levels did not break and instead the price always continued to move downwards again. 

ETH – Ethereum is currently trading at USD 1,573. Ethereum has also not been able to make some ground and instead failed to move back upwards.

ETHUSD weekly chart

With ETH trading below the important positive trend based on the weekly chart above, the market might now be poised to break lower again. For the uptrend to remain intact ETH needs to push above the USD 1,800 price level. If the month of June continues to trade below that zone further weakness in this token remains likely. The price might then continue to decline moving down towards the USD 1,000 price target.

XRP – Ripple is currently trading at USD 1.0470. Since the market will likely end the month of June below the important support zone of USD 1,4000 more downside momentum might be on the cards. Furthermore, the price is currently also trading below the 50- moving average zone of USD 1.1500, which might also signal more downside momentum.

 XRPUSD monthly chart

Should the market continue to fall further the next support level will follow at 0.8500 well below the psychological level of USD 1.0000.

SOL – Solana is currently trading at USD 70.95. Among all observed tokens Solana has been able to remain slightly more positive. Obviously, the negative trend also remains intact as the market has not been able to defend the USD 80.00 price level. With the weakness of Bitcoin the entire altcoin sector is likely not going to offer much upside momentum.

SOLUSD weekly chart

On a positive note, the positive trend might also start to gear up some momentum, again. If the price is able to push beyond the USD 80.00 level more upside momentum might be found. A push towards the USD 120.00 zone could then be on the cards.