May has been a negative month for the cryptocurrency market so far, Bitcoin is trading below $30000, and the risk of further decline is not over. This situation also negatively influences Ethereum ETH/USD, Ripple XRP/USD, and Litecoin LTC/USD.
The entire crypto market currently stands at $1.26 trillion after peaking at $2.9 trillion in November 2021, and according to Mike Novogratz, CEO of Galaxy Digital, the outlook for the cryptocurrency market remains bearish. Galaxy Digital CEO Mike Novogratz said:
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Markets have been suffering from heavy selling due to the Federal Reserve aggressively tightening its monetary policy to combat inflation. Cryptocurrencies could decline another 70%, despite being down more than 85% from their record peaks.
Monetary tightening is usually seen as a drag on risky assets, while the uncertainty because of the Russian-Ukrainian war and the rising risks of the recession also has a negative influence on the cryptocurrency market.
Investors should consider that if Bitcoin falls below the $25000 support, the prices of Ethereum, Ripple, and Litecoin can weaken even more.
Another negative news came from the president of the European Central Bank, which poured cold water on the cryptocurrency market. Christine Lagarde, president of the European Central Bank, said this week that digital cryptocurrencies are rife with speculation and that they are not worth anything.
Central banks remain highly critical of crypto, and Sweden’s Riksbank recently concluded that Bitcoin and cryptocurrencies weren’t money.
Ethereum (ETH) has weakened from $2969 to $1701 since May 04, and the current price stands at $2027.
If the price breaks the critical support level at $1500, it would be a very strong “sell” signal, and the next target could be around $1000.
Ethereum remains in a bear market, and traders should use “stop-loss” and “take profit” orders when opening their positions because the risk is currently high.
If the price falls below the strong support that stands at $0.30, it would be a strong “sell” signal, and the next target could be at $0.25 or even below.
The risk of further declines is probably not over, but if the price jumps above $0.50, we have the open way to $0.60.
Litecoin (LTC) has weakened from $107 to $54 since May 04, 2022, and the current price stands at $72.
The strong support level for LTC stands at $50, and if the price falls below it, the next price target could be at $40.
On the other side, if the price jumps above $85, it would be a “buy” signal, and we have the open way to the resistance level at $100.
Cryptocurrencies are under severe pressure this May, and the entire crypto market currently stands at $1.26 trillion after peaking at $2.9 trillion in November 2021. Christine Lagarde, president of ECB, said this week that digital cryptocurrencies are not worth anything, while Mike Novogratz, CEO of Galaxy Digital, said that cryptocurrencies could decline another 70%.
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