- Ripple breaks the bullish trend, looking for support at $0.8951
- ETH/BTC hits the channel's ceiling, which should give Bitcoin the edge against Ethereum
Mixed news keep crossing the wires about the Cryptocurrency outlook. Yesterday, while FMI Managing Director Christine Lagarde asked for a global regulation on digital currencies, in the US, the Arizona state house passed the Senate Bill 1091, a law to accept Cryptos as a valid tax-paying method. The constant flow of news affecting the Crypto sphere on both directions just keeps adding confusion to the markets, leaving only one clear message: there are still lots of growing pains to come until the Cryptocurrencies markets find a set of global rules that bring some legal certainty to investors.
Ripple losing steam after a 100% bounce
Cryptocurrencies have us accostumed to double digit movements in a daily frequency, but gaining a full 100% in less than a week still feels like a lot of volatility. It is the kind of move that will demand some technical retracements.
After such a move, Ripple is retracing now, having lost the trendline that was leading the price action since the recent lows, and just developing the last bearish leg of an ABC formation. First support is at $0.8951, just where it halted its first bearish step. That level needs to be broken if XRP/USD is about to complete this retracing pattern. Next meaningful support is at $0.8118. On the upside, first resistance is at $1.1275, followed by $1.2260, recent high.
XRP/USD 4H chart
The MACD in the Ripple 4-hour chart is crossed down after having spent some time without a clear direction. The indicator is trading in the positive side, so we should expect a lateral bullish move while it looks to test the 0 level.
Directional Movement Index shows a slight rise in the sellers, but buyers have not diminished. ADX looks to be losing steam, backing the lateral scenario for the upcoming sessions.
Ethereum loses its edge against Bitcoin
ETH/BTC just hit the channel's ceiling that rules the main Cryptocurrency cross and, since then, it has favored Bitcoin. Ethereum has lots of room to cover if it has to go back to the base of the channel, and that would mean losing about 125% in relation to BTC.
ETH/BTC daily chart
Ethereum having lost the tailwind against Bitcoin helps us reading the ETH/USD charts. ETH has also bounced a bit since recent lows, but it's still way far from the Ripple performance. Ethereum is trading now in a tight range between $769.13 and $867.53. If that range were to be broken, consider next support at $671.36 and $912.60 as the following resistance.
ETH/USD 4H chart
In the ETH/USD chart, MACD is in a similar situation than the one we've seen in Ripple, but with way less room to cover until the equilibrium line. That makes a move back into negative territory a very probable scenario.
Directional Movement Index shows a slight advantage for the sellers, very close from buyers but still with both a low levels. ADX is showing a lack of trend strength.
Even though yesterday saw gains across the Crypto board, most of the currencies entered congestion areas, as we published yesterday. There's lots of price areas acting as tight supports and resistances, a scenario that requires strong trends for any asset to move in a clear direction. The ADX is still falling after the recent weeks' falls and it will still need more time to be in position to lead another consistent bullish push.
Meanwhile, expect lateral moves (some with bullish bias, others bearish) but with no big movements in the upcoming trading sessions while we wait for the current technical figures to clear out and an ADX better configured for initiating another trend movement.
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