The company behind Tether (USDT) has destroyed 500 million USDT in a move to curb the effect of the recent selloff. The USD-pegged stablecoin has sparked controversies in the crypto space with people asking whether the token has enough fiat to back the circulating USDT. At the moment, the company’s treasury has only 467 million USDT for future issuance. Elsewhere, the largest crypto exchange, Binance has raised more than $1.4 million in order to support the people affected by the floods in west Japan. Moreover, the government of Japan has recognized the self-regulatory organization formed in April 2018 to oversee domestic crypto exchanges. The market, however, continues to trade sideways as the major cryptos like BTC and ETH remain stable.
Dogecoin continues with the deflation exercise that kicked off at the beginning of September. The declines followed a sustained bullish trend that had DOGE/USD correct higher from the support at $0.0020. The price formed a high marginally below $0.0070 before the downtrend progressed.
The trading in October has been recording lower highs and lower lows. The support at $0.0055 failed to hold the price in the first week of this month. Bears increased their revenge as Dogecoin tanked further below $0.0045. At present, Dogecoin is exchanging hands at$0.00385 while the prevailing trend is bearish.
There is a falling wedge pattern in formation on the 4-hour chart. This means that DOGE/USD is moving towards a bullish breakout. However, a reversal from the downtrend will be required for a sustain retracement above the resistance at $0.0045. The stochastic on the same chart is ranging in the oversold region. Similarly, the RSI is heading south into the oversold region signaling that the bears have the control. Dogecoin is posed for more losses that will soon test $0.0030, besides a below the falling wedge support will breakdown further towards the former support at $0.0020.
The sideways trading in Ethereum has entered the 7th week. The second largest crypto has been confined in the levels marginally above $200. The movement to the upside has been capped at $205 while the downside is protected at $200. The up and down price actions have not been significant to cause any change amid the low trading activity. In the past Ethereum sideways trading has been lasting for a period of three weeks. There was another 5-week consolidation in July which the current sideways move is by far the longest.
Meanwhile, ETH/USD is trading at $204 after the price held on to the support provide by the descending trendline on the 4-hour timeframe chart. The technical indicators like the RSI is advancing steadily north while the stochastic has reversed the trend to the upside. This means that Ethereum is poised for growth above $205. The bullish move above this level will face resistance at the 200SMA slightly below the 38.2% Fib level between the highs of $304.9 and the lows of $16989. On other hand, if a reversal occurs below $200, ETH/USD is likely to correct lower aiming for the major support at $170.
The digital asset that is backed by science and research is also suffering below the trendline resistance. The bullish spike on October 15 in an engulfing candle stepped above $0.082 but stopped at the swing high highlighted by the Fib levels at $0.0834. Cardano retreated into a Trange with the support at $0.0739 while the upside is capped below the bearish trendline.
A contracting triangle pattern on the hourly chart means that the price which is trading at $0.0749 is approaching a breakout. The stochastic is headed for the overbought regions, means that the breakout is likely to be bullish. However, the RSI has changed direction south to show that the bears are still quite present in the market.
A break to the upside will battle the resistance at the 100SMA, moreover, other hurdles will limit gains at the 61.8% Fib level and the upper supply zone at the swing high. If the support at $0.07390 gives in to the selling pressure, ADA/USD will find another support at $0.07.