Cryptocurrency Tether on Tuesday, October 16, stabilized after sharp fluctuations in the day before. Basic trades in virtual currency are under $0,9980 (-0,1%), according to Dmitry Gurkovsky, senior analyst at RoboForex.
From the point of view of technical analysis the current dynamics of the Tether is estimated as a narrowing consolidation. In the moment quotes of the Tether is sandwiched between the support levels and resistance $0,9854 and $1,0183 respectively.
The breakdown of one of these boundaries could mean the exit from the consolidation and removal from parity. Generally, the yield of consolidation followed by a strong directional movement, and distance can at times exceed the widest area of the consolidation range.
Fundamental news for cryptocurrency Tether in recent times were not very favorable. On the one hand, altain began to rapidly fall in price after the cryptocurrency exchange KuCoin announced the decision to suspend work on deposits and limit the output USDT in connection with the peculiarities of maintenance of the system. Within a short time all again became available, and the price of bitcoin has recovered, but it is clear that this local stress to Tether was clearly unnecessary.
On the other hand, market rumors that the exchange Binance agreed to the delisting USDT, pressured for money, but the actual confirmation they have not received and quickly lost its relevance.
In addition, there was information about problems with funding Tether. It is, above all, that the Puerto Rican NobleBank, which allegedly maintains accounts Tether, has financial problems and is under threat of collapse. As reported, the main problem NobleBank is connected with the fact that he was influenced by the cryptocurrency market.
It is known that the Bank had previously attempted to find support from the Tether, it was about a few days, during which financial institutions needed cash support, otherwise the Bank was threatened with closure. However, two weeks later, new information on this account and has not appeared. By the way, it is understood that the Tether on the background of such news can also be local problems, if large investors want to sell large portfolios of tokens.
Tether is, by different estimations, 12 or 14 place in the ranking of cryptocurrencies, based on the size of the company’s capitalization. In the market say that the cost of the token is tied to the US dollar, so price fluctuations are within 1 USD. Because of this, the volatility in the Tether needs to be smoothed.
Forecasts financial markets are private opinion of their authors. The current analysis is not a guide to trade. RoboForex is not responsible for the results that can occur when using trade recommendations submitted reviews.