XRP and Stellar Lumens [XLM] collectively fell prey to price corrections, with the tokens plummeting in valuation. At press time, XRP had suffered a 0.16 percent decline and was priced at $0.395. The market capitalization was relatively unaffected and stood at $16.6 billion, at press time.
XLM suffered a similar fate after it experienced a decline of 1.02 percent against the US Dollar. The trade volume was healthy and amounted to $458 million, with the token valued at $0.133.
XRP one-day chart
On XRP’s one-day chart, the token had undergone sideways movement between the resistances at $0.367 and $0.291, prior to them being breached. The uptrend extended from $0.335 to $0.454, and the new resistance was at $0.455.
The Bollinger Bands indicated a highly volatile period for the token
The Fisher Transform line witnessed a bearish trend for the token as the red line remained above the blue line
The Awesome Oscillator exhibited trend reversal and strong bearish momentum since red bars appeared in the chart
XLM one-day chart
XLM’s one-day chart exhibited a major uptrend, extending from $0.087 to $0.133, followed by another from $0.125 to $0.142. The new resistance line remained at $0.143 and the support line was at $0.074.
The Parabolic SAR indicated a bullish trend as the dotted markers were found below the candlesticks
The Relative Strength Index indicated that the buying pressure dominated selling pressure
The Chaikin Money Flow line was above the zero line, indicating that the capital entering the market was significant and more than the capital flowing out of the market
Despite the minor fall at press time, indicators suggested a bullish trend for Stellar Lumens [XLM]. However, XRP recorded a trend reversal and was projected to be bearish in the near term.
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Wall Street is on the losing side of Bitcoin’s impressive price rally
Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.
Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.
The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].
A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.
Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.
Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.
BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.
Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.
In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.
Who said Coin Street doesn’t go past the Wall Street express lane?
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