- Ripple reached $1.20 during the weekend, now in an excellent position to lead the gains
- Main Cryptocurrencies start the week on the upside, with bullish momentum gaining traction
Ripple is looking like the most advanced Cryptocurrency after having risen strongly during the weekend. Cryptocurrencies have started the week on the rise, showing much improved technical pictures across the board.
On the other hand, again some fraudulent use of the Blockchain has been reported, with thousands of users of UK government websites having seen their computing power kidnapped for mining purposes.
Also on the surface appear the rumors of possible manipulation of the Cryptocurrency markets by publishing and spreading fake news about Chinese government allegedly limiting and even banning Bitcoins’ use. The agents behind these fake-news leaks are suspect of having opened selling positions in Bitcoin’s future before manipulating the markets.
XRP/USD trading higher, leading the Crypto surge
Ripple broke above $1.20 during the weekend but was not able of consolidating to that level and has retraced a bit down to $1.06. From last February 6th, XRP/USD has surged a whooping 100%, following a trend-line that comes from lows now sitting around $0.97. Below that level, the bullish momentum would banish, opening the doors for a new bearish leg. On the upside, first resistance is located at this past weekend highs, at $1.2268, followed by upper targets at $1.382 and $1.552.
XRP/USD 4H chart
-636540304983935942.png)
Ripple’s MACD shows a different disposition than in other Cryptos, as it entered the current move before its pals. The indicators is now in a clearly bullish territory, although with a rather flat profile. We can’t discard that price action takes XRP/USD back to the trendline coming from lows, just to gain some room and inclination before other rises come.
Directional Movement Index shows a clear advantage for the buyers, with an increasing trend in favor of bulls. Selling levels are low and don’t show much activity in the bears side. There is a positive setup in this indicator, supporting a continuation of the bullish ride.
Bitcoin starts the week on the rise, positions itself for the short-term
Bitcoin is rising over 8% on the day and improves considerably the chances of bullish moves in the upcoming sessions. Over the weekend, BTC/USD traded briefly above $9000, where it left an ugly bearish turning formation that stresses the importance of $9075 as the first bullish target. The current area matches the trend line coming from highs and the 23.6% Fibonacci retracement since the all-time highs from last December.
If that level is broken, Bitcoin would get into a congestion area that extends itself way over $13500-$14000. We should expect erratic moves in-between those levels.
BTC/USD 4H chart
-636540305286632413.png)
In the Bitcoin chart, MACD has crossed to the upside and is now configured to a bullish continuation. After a bullish test that took the indicator close to the 0 level, it has turned up and has some room to grow.
Directional Movement Index also backs the upside, with sellers outnumbered by buyers and ADX at low trend levels, with lots of room to grow. This setup matches a possible upcoming trend move, looking bullish now but needing to consolidate the current price levels.
Ethereum shows relative weakness to Bitcoin
Ethereum is losing its edge against Bitcoin. After nearly two months of outperforming BTC as the point of reference in the Crypto sphere, it looks like Bitcoin is about to take its leading role back in this important Cryptocurrency cross. ETH/BTC is gaining more and more interest from an analyst point of view, as it looks like it has a strong relationship to the general Cryptocurrency markets behaviour.
ETH/BTC 4H chart
-636540305554703551.png)
MACD is just trading below 0 and extremely flat, so it looks difficult that it gets into negative territory. Moreover, the ETH/BTC cross is attacking the base of the triangle that currently contains the price action.
Conclusion
We might be witnessing a general change of tone across the Crypto board, foreseeing possible rises in the short-term. The upcoming trading sessions might show an increase of volatility, given the high concentration of meaningful levels. The inverted Head & Shoulders formations that we highlighted last week seem to be working and it might be interesting to go back to that analysis to get a global picture of the market outlook.
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