Digest: The Main News On The Cryptocurrency Market (November 23-27)
This week has become a “take-off” for many cryptocurrencies, and new highs confirm this. As expected, the leading altcoins are confidently following in the footsteps of Bitcoin, optimism in the market is growing, while analysts are increasingly talking about the “hidden” drivers of the further rise of the crypto. And so, let’s take a closer look at the main events of the week.
Ethereum breaks the $500 level for the first time since 2018
Ethereum refreshed its 2020 high to hit $570 and thus broke out of its two-year range. The technical charts are signaling strong bullish impulses, but Ethereum is ahead of a battle for the critical $600 resistance level.
Ethereum has already multiplied all the losses since the March collapse, and if the bulls push the asset above $600, its growth for the year will be 350%. Analysts have identified several key factors that play into the hands of Ethereum and can further strengthen the current dynamics. First is the movement of capital from BTC to altcoins, the first signs of which were recorded last weekend and were confirmed within a week.
The second catalyst for the rise in the price of Ethereum was the approximation launch of the deposit contract, which is scheduled for December 1. The deployment of the new Ethereum 2.0 phase will likely take place within the deadline since the validators have already sent the required amount of tokens.
Vitalik Buterin, as always, maintains an impeccable faith in Ethereum 2.0. In a recent interview, he noted that after the launch, “the network will become an integral part of the global economy.” Also, during the week, we saw a revival in the DeFi market and a new inflow of funds after a drawdown in early November.
XRP doubled in value in 7 days
XRP, following other altcoins, also showed parabolic growth: in just 7 days, the price of the token rose by more than 100% and thus reached the maximum in September 2018. XRP has peaked at 80 cents this week and remains in the bullish channel.
Of course, the impetus for the XRP takeoff was the optimism that now prevails in the cryptocurrency market, despite the current pullback in the Bitcoin price. The demand for the Ripple token is fueled by positive signals on technical charts and a sharp increase in user activity on the XRP network. Analyst Josh Olshevich is confident there is a breakout ahead of XRP, as a “reverse head and shoulders” pattern has formed on the chart.
However, most traders are predicting a reversal of the XRP price back to the 55-60 cent range.
Millennials are the driver of the current Bitcoin rally
This week’s landmark interview with Rick Ryder, CIO of BlackRock, was given to CNBC. Also, to the obvious factors of the Bitcoin rally, such as the technical performance of the network and the growth of open interest from institutions, he called the “hidden” driver. These are millennials who are increasingly showing interest in cryptocurrency as an alternative to the traditional financial system.
According to Rick Ryder, the new generation has a keen distrust of banks and other financial institutions, as their maturation coincided with the 2008 global economic crisis. The decentralization of cryptocurrency is exactly the trigger that attracts millennials. That is why in the last few years, we have seen a trend towards the “rejuvenation” of the general age of traders and investors.
Rick Ryder’s phrase that “Bitcoin is here to stay” is perhaps better than anything else underscores the results of this week.