The cryptocurrency market remains under pressure this trading week. Bitcoin fell below $ 43,000 for a moment and the risk of further declines is not over yet. This situation also negatively affects 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 back below the support level of $ 45,000, it would be a clear “sell signal” and this would put further pressure on the entire cryptocurrency market. Bank of Mexico Governor Alejandro Diaz de Leon said Thursday that cryptocurrencies are high risk investments and poor value investments.
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These comments suggest that Mexico will not be adopting digital currency as a parallel legal tender anytime soon like El Salvador.
In our opinion, anyone who receives Bitcoin for a good or a service is more of a barter transaction, because they swap a good for a good, but not really money for a good. People don’t want their purchasing power, their wages, to rise or fall by 10% from one day to the next, said the Governor of the Bank of Mexico, Alejandro Diaz de Leon.
Ethereum (ETH) continues to stay above the $ 3000 support
Ethereum (ETH) has dropped from $ 4025 to $ 3015 in less than a few days, and the current price is around $ 3471.
If the price drops below the $ 3000 support it would be a firm “sell” signal and the next target could be around $ 2800. The risk of further decline is likely not over yet, but if the price moves above $ 3700 it would open the way to the $ 4000 resistance.
Ripple (XRP) is currently trading very close to the strong support level at $ 1
Ripple (XRP) is currently trading very close to the strong support level at $ 1, suggesting that the price could drop even further. If the price drops below 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 as the risk is currently high. On the flip side, a break above the $ 1.35 mark could be a very good opportunity for short-term traders and the next target could be around $ 1.50.
Cardano remains under pressure
Cardano (ADA) has dropped from $ 3.09 to $ 2.02 since September 2nd, and the current price is around $ 2.5.
There are some obvious risks to buying ADA these days, and if the price drops below the $ 2 support it will likely hit the $ 1.5 level soon.
All of the major cryptocurrencies have declined this trading week, and this situation is also putting pressure on the price of Ethereum, Ripple and Cardano. Mexico’s central bank governor Alejandro Diaz de Leon said Thursday that cryptocurrencies are high-risk investments and poor value investments.
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