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FameEX Daily Technical Analysis | Continued XRP Rise Leads Futures Open Interest Reaching a New High Since December 2021

2023-03-30 14:57:05

Yesterday, all major cryptos exhibited price appreciation with fluctuations between 0.60% and 5.92%. BNB, still showing a weak trend, slightly rose 0.60%. After a strong rise in price for several days, the futures open interest of XRP has reached a new high since December 2021, roughly $850 million, which may cause a series of liquidations, and it is necessary to keep an eye on the XRP trend in the future. BTC and ETH, two of the leading cryptocurrencies, climbed 5.92% and 2.16%, respectively.

According to the 4-hour trading cycle depicted below, a clear market trend has emerged after a narrow consolidation for over 10 days. The long had the edge, dominating the market trend. From the perspective of SMAs, the MA7, MA25, and MA99 displayed a long trend again, indicating that the short-, medium-, and long-term trends are favorable to the bullish market. However, the long has just grasped the situation, and it is recommended to pay close attention to whether there is a reversal in the subsequent trend.

Overall, the long-term market is slightly favorable to the long, and the short- and medium-term trends are dominated by the long. Therefore, it is recommended to hold several long positions at present and enter into further orders when the trend is clear.

Source: TradingView

During yesterday’s trading session, all three major U.S. stock indexes rose. The Dow Jones index only climbed 1.00%, showing a relatively weak trend. Similarly, the S&P 500 index was up 1.43%. The Nasdaq index was relatively strong, rising 1.79%. Meanwhile, two of the leading cryptos, BTC and ETH, rose 5.92% and 2.16%, respectively.

As to political and economic fields, Michael Barr, the Federal Reserve’s vice chair for supervision, acknowledged the next day after the hearing that the failure of SVB was a result of bank mismanagement, regulators’ irresponsibility, and regulatory system malfunction. It has come to our attention that the Biden administration asked federal regulators to impose new rules on improving the regulation of midsize banks in response to the SVB’s collapse.

Fed Chair Jerome Powell held a meeting with the Republican Study Committee on Wednesday. After the meeting, Republican Study Committee Chairman Kevin Hern revealed that Powell urged Congress to consider adjusting the deposit insurance cap and that the Fed predicted one more rate hike for the rest of the year.

Source: Yahoo! finance

Over the past 24 hours, there has been a total of $25.07 million in long liquidations and $79.56 million in short liquidations, resulting in a net short liquidation of $54.49 million. 43,331 traders experienced liquidations in total in the last 24 hours. BTC, ETH, and XRP displayed liquidations of $15.21 million, $6.47 million, and $1.86 million, respectively, ranking the top 3 cryptos in liquidations. Although there is no big difference in the total liquidations in the last two days, the number of traders who have been liquidated nearly doubled, indicating that retail investors are at a disadvantage compared to major investors.

The Fear & Greed index modestly fell to 57, still over the significant threshold of 50. This suggests that the market has become cautious optimism. However, due to the unclear market trend, it is recommended to observe the subsequent trend.

The Bitcoin Ahr999 index slightly rose to 0.80, which is above the support level of 0.45 but below that of 1.2. This shows that the short-term trend becomes strong, but the long-term trend is still a bear market. Therefore, It is not recommended to buy the dip in batches. However, purchasing small amounts through dollar-cost averaging (DCA) may be a viable strategy. 

According to the above analysis, the short-term trend is starting to turn bullish, and the overall market favors optimism. Therefore, we recommend periodically buying with a fixed amount and selling them gradually as the market rises.

Source: Coinglass

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.

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