Top 3 Trending Coins: BTC Falls Under 21, 50DMA Plus Realized Price Pre-Fed, MATIC Underperforms

Key Points

• Bitcoin fell below its 21, 50DMA and its realized price on Tuesday, with crypto remaining under pressure pre-macro risk events.
• Ripple was in focus after the company secured a partnership with Singapore’s FOMO Pay.
• Polygon’s MATIC was the worst performing cryptocurrency in the top 20 by market cap.

Bitcoin Falls Back Below 21 & 50DMAs Plus “Realized Price”

Cryptocurrencies continued their negative start to the week on Tuesday, with a negative earnings release from Walmart, which reduced their profit forecast amid a worsening consumer demand outlook, and continued worries about the economic impact of Russia’s reduced gas flows to Europe, weighing on sentiment. Traders had already been de-risking ahead of key macro events later this week, which include Wednesday’s Fed meeting, Thursday’s US Q2 GDP report and Friday’s Eurozone CPI and US Core PCE inflation readings. Mega-cap US earnings will also be in focus.

Bitcoin was last trading just above the $21,000 level, having dipped as low as the $20,800s overnight. The world’s largest cryptocurrency is now below its 50 and 21-Day Moving Averages at $22,000 and $21,500 respectively, having dipped roughly 4.0% in the last 24 hours, as per CoinMarketCap. Analysts also noted that Bitcoin has also fallen back below its so-called “realized price”, the price at which the average Bitcoin last moved, at $21,850 per token.

Twitter user and Bitcoin analyst @therationalroot warned that “either we find support here or we might get another arch below realized price like in 2014”, and warned that the concerning macro backdrop might indicate the latter.

Cycle comparison: either we find support here or we might get another arch below realized price like in 2014.
Macro might indicate the latter.#Bitcoin #onchain pic.twitter.com/zfphUK2mzv

— Root 🥕 (@therationalroot) July 25, 2022

However, on-chain analytics firm Glassnode said in its latest weekly newsletter that there is extreme demand for Bitcoin in the $20,000 area. The company called the demand zone a “significant transfer of ownership from capitulating sellers to new and more optimistic buyers”. But this perhaps raises the risk that if the $20,000 level is once again broken, Bitcoin could experience a sharp dump lower, as happened in mid-June from the $30,000 level.

Ripple Partners With Singapore’s FOMO Pay

Blockchain-based payments company Ripple just secured a partnership with one of the leading payments firms in Singapore, FOMO Pay. Under the new deal, FOMO Pay is able to improve its treasury payments by using Ripple’s so-called On-Demand Liquidity (ONL) feature. According to FOMO Pay’s CEO, the company had previously relied upon inefficient modes of payment which could sometimes take up to days, while its access to Ripple’s ONL means that payments can now occur instantaneously.

According to a tweet from Ripple, the partnership “will allow FOMO Pay to achieve affordable and instant settlement in EUR and USD globally”.

🇸🇬We're partnering with FOMO Pay, the Singapore-based payments institution, to improve its cross-border treasury flows using #ODL!
This will allow FOMO Pay to achieve affordable and instant settlement in EUR and USD globally.
Learn more: https://t.co/NFOUvQZgNE

— Ripple (@Ripple) July 26, 2022

XRP Probing Key Downtrend

The native token to Ripple’s blockchain XRP has been under pressure this week, just as the rest of the cryptocurrency market has been. XRP/USD was last changing hands in the $0.33s, having dipped below the 21 and 50DMAs in the $0.34s on Monday. XRP is now down over 12% since last week’s highs in the $0.38 area. According to FX Empire’s senior crypto analyst Bob Mason, the ongoing SEC vs Ripple case “continues to peg XRP back from a return to $0.40”.

Following its recent decline, XRP looks close to testing a key downtrend that had, prior to mid-July, been capping the price action going all the way back to mid-May. While some analysts might see this as an attractive point to re-enter with longs, others are worried that XRP looks on course to retest recent lows in the $0.30 area.

Polygon (MATIC)

The native token to Ethereum-scaling solution Polygon’s blockchain MATIC was last trading lower by close to 2.0% on Tuesday and eyeing a test of its 21DMA in the $0.7250 area. According to CoinMarketCap, the cryptocurrency is down close to 10% in the last 24 hours, having slumped more than 12% alone on Monday from highs in the $0.8850 area.

The slump tracks downside in the rest of the crypto space, though a technical selling made things worse. Last week, MATIC/USD formed a pennant structure. On Monday, it broke this structure to the downside, hence the sudden onset of selling pressure.

While Polygon has now retraced more than 23% from its highs near $1.0 per token at the start of last week, the cryptocurrency’s near-term technical outlook still looks fairly good. At current levels in the $0.75s, MATIC is finding resistance in the form of a mid-May high. Meanwhile, there is plenty more support between current levels the low-$0.60s.

All going well on the macro front this week and assuming a broad crypto rally (a big assumption to make!), MATIC bulls will be hoping for a rebound and test of the $1.0 level that they just missed out on earlier in the month.