The cryptocurrency market remains under pressure this trading week, Bitcoin went below $43000 for a moment, and the risk of further declines is still not over. This situation also negatively influences the price of Ethereum ETH/USD, Ripple XRP/USD, and Cardano ADA/USD, and traders should be very careful when opening their positions.
If the price of Bitcoin falls again below the $45000 support level, it would be a firm “sell” signal, and this would add further pressure to the whole cryptocurrency market. Bank of Mexico Governor Alejandro Diaz de Leon said this Thursday that cryptocurrencies are high-risk investments and a poor store of value.
These comments suggest that Mexico will not be following El Salvador any time soon in adopting the digital currency as parallel legal tender.
“Whoever receives bitcoin in exchange for a good or service, we believe that (transaction) is more akin to bartering because that person is exchanging a good for a good, but not really money for good. People will not want their purchasing power, their salary to go up or down 10% from one day to another,” said Bank of Mexico Governor Alejandro Diaz de Leon.
Ethereum (ETH) continues to trade above $3000 support
Ethereum (ETH) has weakened from $4025 to $3015 in less than several days, and the current price stands around $3471.
If the price falls below $3000 support, it would be a firm “sell” signal, and the next target could be around $2800. The risk of further declines is probably not over, but if the price jumps above $3700, we have the open way to $4000 resistance.
Ripple (XRP) is trading currently very close to the strong support level at $1
Ripple (XRP) is currently trading very close to the strong support level at $1, indicating that the price could weaken even more. If the price breaks this support level, it would be a very strong “sell” signal, and the next target could be around $0.80.
Traders should use “stop-loss” and “take profit” orders when opening their positions because the risk is currently high. On the other side, if the price jumps above $1.35, that could be a very good opportunity for the short-term traders, and the next target could be around $1.50.
Cardano remains under pressure
Cardano (ADA) has weakened from $3.09 to $2.02 since the 02nd of September, and the current price stands around $2.5.
There are some obvious risks when it comes to buying ADA these days, and if the price falls below $2 support, it will probably reach the $1.5 level soon.
Summary
All major cryptocurrencies have weakened this trading week, and this situation also pressures the price of Ethereum, Ripple, and Cardano. Bank of Mexico Governor Alejandro Diaz de Leon said this Thursday that cryptocurrencies are high-risk investments and a poor store of value.
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