Weekly Cryptocurrency Market Brief

Despite the large bearish moves taking place in the cryptocurrency market over the course of the past week, Monero (XMR) finished the week at a higher price. It printed a green candle on the weekly chart, which included a large shadow due to market dips and bearish volatility. The price reached $424, a level not seen since the previous market top in January 2018. It is currently consolidating in the $340-400 range, after being rejected from the support at the Fibonacci golden ratio at $290, after correcting from its last bullish move. It remains to be seen whether Monero will reach new all-time highs in the current bull market.

Chainlink (LINK) fell heavily in price during last week’s market dip, wiping out the gains of the previous week and printing a bearish engulfing candle on the weekly chart. This took place after it reached highs above $44, surpassing the target of the triangle pattern it formed between mid-February and late March. It currently trading in the $30-35 region, while maintaining market structure over the critical support at $30.

Polkadot (DOT) also struggled during the past week, printing four consecutive daily red candles after breaking the $37 support level, before settling above the critical $30 support level at the end of the week. It also formed a large shadow on one of its daily candles during its bearish move, having been rejected at the 50% Fibonacci retracement level at $26.5, accounting for the bull run it began in December 2020. Its behaviour around the $28-30 support zone is significant in determining the direction of its next move.

 

(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-principal 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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