A SIGH OF RELIEF FOR CRYPTOCURRENCIES AS PRICES JUMP

After months of decline, cryptocurrencies have started to gain across the board. In the past five days, Bitcoin, Ethereum and Ripple have gained by 7.5%, 5.84% and 5.90% respectively. The market capitalisation of all cryptocurrencies published by CoinMarketCap has reached $269 billion from last week’s $232 billion.

The recent rally is mostly because of technical traders who believe that cryptocurrencies have become oversold. As the Bitcoin chart below shows, the ETH/USD pair has been oversold for a few weeks.

In recent days, there has been no major news in the cryptocurrency industry. One of the most significant talking points came from the Supreme Court of India who refused to lift the cryptocurrency banking ban. That said; India has not so far emerged as a major player in the cryptocurrencies industry.

Positive news came from the United States where the NBA team, Sacramento Kings, announced that they are entering the cryptocurrency industry. The team will start mining Ethereum in its arena with the funds raised being put towards technology-related scholarships. The new move is a partnership between the basketball team and another company, MiningStore, which will install the mining rigs in the arena.

The ETH/USD pair is currently trading at $448, which is slightly lower than yesterday’s high of $477. Yesterday’s high was also an important resistance point as shown below. The pair’s price is at the lower side of the Bollinger Band. This means that there is a likelihood that the pair will move slightly higher today to the middle of the band at $460.