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Crypto on-chain analysis; BTC, ETH, XRP, LTC, ADA ideas

23 Jun, 2021 Martin Petkov
Crypto on-chain analysis

Hello and welcome, everyone. It's Martin here with CryptoGains. Today, we're focusing on on-chain analysis in the crypto world, beginning with the Number of Active Addresses for Bitcoin and Ethereum.

What we can see is very substantial drops by about 24% in the number of active addresses for Bitcoin, which returns us to the levels of May-June 2020, and a similar drop in Ethereum, about 30%, returning to the level of January-March 2021. Of course, a lower number of active addresses means less activity, less interest in both cryptocurrencies, suggesting the potential for a bit of price stagnation in the short- to mid-term. 

Very similar dynamics with the total transfer volume; drops of approximately 60 to 70%, both for Ethereum and Bitcoin, returning us, for Bitcoin, to levels seen in January 2021 and, for Ethereum, back to levels from January-March 2021.

Also, what is quite interesting to observe is that we're observing very similar dynamics in terms of the Long- and Short-Term Holder Supply and Profit/Loss Ratios, like what we saw at the end of 2017/beginning of 2018, the previous big peak in Bitcoin prices. What is interesting to observe is that the majority of the short-term holders are in loss, indicated by this paler shade of red, whereas most long-term holders are in profit, as indicated by the darker shading in blue here. And with these depressed prices, a period of accumulation is potentially beginning, like what we saw from the beginning of 2018 during the long period of consolidation in Bitcoin prices. 

Also, the crackdown in China against Bitcoin miners resulted in a very substantial drop in the main hashrate of approximately 16%, taking us back to levels last seen in June to September 2020. And considering that many of the miners are driven out of the country, we can see that some of them are distributing their coins. Net position changes negative, suggesting that Bitcoin miners are selling. So let's now move to the charts and see how you can trade some of these insights.

Beginning with Bitcoin versus Tether, I like $33,750 as my pivot point to initiate long positions in Bitcoin, with targets at $35,000 and $36,200 based on horizontal support and resistance levels, one of the most reliable indicators for trading.

Now for Ethereum, I like $2010 as my pivot point, buying Ethereum above that level. My two targets are $2140 and $2250. Conversely, on the short side, if we below $2010, selling Ethereum, with targets at $1940 and $1856.

And now we're moving to Ripple. Ripple comes with a buy signal on the StormGain platform at the time of filming. $0.65 is a good level to look for to initiate long positions, with targets at $0.69 and $0.74. Conversely, below $0.65, selling Ripple as the downside pressure is likely to prevail and take us on the short side to $0.60 and then further down to $0.54.

And now we're moving to Litecoin. Litecoin also comes with a buy signal on the StormGain platform as of the time of filming. I suggest initiating long positions above $130, with targets at $137.50 and $145.50, which are the nearest resistance levels. Conversely, if we break below $1030, we could see more declines, taking us down to $120 and then lower down to $106.

And finally, we are moving to take a look at what's going on with Cardano. For Cardano, I like $1.26 as my pivot point to initiate long positions, with targets at $1.38 and $1.458. Conversely, below $1.26, selling Cardano, with targets at $1.175 and $1.01. 

All the ideas from today come from major crypto assets already discussed: Bitcoin, Ethereum, Ripple, Litecoin and Cardano. These are good opportunities to begin trading once again after we saw some substantial declines and recover your confidence in crypto trading. As always, keep learning with the video education section, the CryptoGains Market Insights subsection and, very importantly, remember to join the Crypto Signals Made Easy channel for insightful articles in trading ideas. 

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