Weekly Cryptocurrency Market Brief

After reaching the top of the falling wedge pattern it has been forming over the past few weeks, Bitcoin failed to break upwards in price and has continued its descending movement, reaching a low of just over $31k on July 16, 2021. However, it has held market structure and still appears to be in a re-accumulation phase. Despite the negative overall current market sentiment, Bitcoin remaining in the $30-40k range for an extended period of time would be seen as bullish in the big picture, and also as a catalyst for another bull run in the market.

Cardano (ADA) has struggled in the past two weeks, falling to a low of $1.15 after reaching a high of over $1.49 on July 4, 2021. This is the second higher low it has formed since May, when it reached $0.94 on May 19, 2021, before reaching $1 on June 22, 2021. Currently trading at about $1.20, this represents more than a 50% drop from the high it reached on May 16, 2021, where it reached a record price of over $2.46 per token.

Celsius (CEL) fell to lows of 4.79$ over the past week, having reached a local top of $7.08 per token on July 4, 2021. Having bounced off the strong support level at the low, it is currently trading at about $5.5 per token and could be forming a bullish pattern. It has considerable way to go to reach the previous high and also the all-time high of $8, reached on 9 April, 2021 and 3 June, 2021. Maintaining market structure above the support zone in the $4.79-5 range is key to reaching that target.

Compound (COMP) is currently trading at around $385, having fallen from its recent high of $529, which it formed on July 6, 2021. It seems to have formed a higher low, having previously bottomed at just over $198 on 22 June, 2021. Its current price represents almost a 60% drop from its all-time high, of $911, reached on May 12, 2021.  A break upwards past the resistance at $500 is required to target the all-time high, while a fall below the $200 support would indicate further movement to the downside in the market.

 

(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.

 

ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)

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