- Consolidation in the Ether affects the market and triggers a positive consolidation phase in the medium term.
- BTC/USD does not consolidate the $10000 level and will have to wait for the next upside.
- XRP affected by new token sales announced by Ripple Ltd.
Overbought levels were starting to get high at the end of last week. It seemed necessary and healthy for the price to consolidate, and it is doing so.
On Saturday, Ethereum, the most overbought asset in the Top 3, showed some selling. On Monday, Bitcoin is also joining the consolidation.
The Altcoin segment has done well in this 2020, escaping from the bearish territory and opening a new technical space where dreaming again with the moon does not sound epic.
The upward movement is so intense that it has quickly reached the upward barrier of the new scenario, and now it's time to define where things will move in the coming months.
The technical analysis of the ETH/BTC pair will help us understand where we stand.
ETH/BTC Daily Chart
ETH/BTC was unable to break above 0.0223 on Friday although the 0.022 support level appears to be reliable.
The leading pair shows a very particular moving average structure, with a possible evolving gold cross that would push the Ethereum-Bitcoin price ratio into a new dimension.
The ETH/BTC pair is currently trading at a price level of 0.22. Above the current price, the first resistance level is at 0.0251, then the second at 0.027 and the third one at 0.028.
Below the current price, the first support level is at 0.022, then the second at 0.020 and the third one at 0.0195.
The MACD on the daily chart is losing its bullish profile, although the distance between the two averages remains unchanged. The profile cools off a bit from overbought levels, which is healthy for the price in the medium term.
The DMI on the daily chart shows the bulls losing the support of the ADX line, something that had already happened in the last few days. The bears do show some new behavior as they are now reacting to the bullish trend for the first time since mid-January.
BTC/USD Daily Chart
BTC/USD is currently trading at the price level of $9905 and is playing at the psychological level of $10000.
Above the current price, the first resistance level is at $10170, then the second at $10600 and the third one at $11200.
Below the current price, the first support level is at $9600, then the second at $9200 and the third one at $8800.
The MACD on the daily chart shows a slight loss of momentum. The development pattern of this structure is usually to drive the price down.
The DMI on the daily chart shows bulls at levels similar to those of recent days, while bears do change their attitude and move upward in response to the current weakness of BTC/USD.
ETH/USD Daily Chart
ETH/USD is currently trading at the $221.5 price level after failing to overcome price congestion resistance at $230.
The rise in Ethereum from December's lows has been very rapid, and a phase of consolidation is very positive.
Above the current price, the first resistance level is at $230, then the second at $240 and the third one at $250.
Below the current price, the first support level is at $212, then the second at $206 and the third one at $200.
The MACD on the daily chart shows a very positive opening between the lines, although it loses some of its tilt. The current structure is susceptible to buying and may go into full bullish mode again as soon as fresh money returns to the Ether.
The DMI on the daily chart shows that the bulls are losing some ground, but not the bullish trend that began in late December 2019. The bears are moving a little bit higher, but far from discussing the leadership on the buying side.
XRP/USD Daily Chart
XRP/USD is currently trading at the price level of $0.2729 after a failed attempt at the $0.29 and $0.28 levels. News of XRP selling by parent company Ripple Ltd has not helped the bullish trend continue.
Above the current price, the first resistance level is at $0.28, then the second at $0.29 and the third at $0.30.
Below the current price, the first support level is at $0.27, then the second at $0.255 and the third one at $0.237.
The MACD on the daily chart shows that the upward slope is decreasing slightly, while the opening between the lines is also getting worse.
The DMI on the daily chart shows bulls with a neutral profile, while bears react strongly. It appears that the selling side of the XRP/USD may be able to take the lead in this pair.
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