- The tone of the market remains positive for today.
- Bitcoin and Ethereum are going to do better than Ripple.
- The duration of the bullish momentum will be decided early next week.
Yesterday was a good one for the bulls. The climbs were consistent throughout the day. Today dawns with a logical collection of profits between day-traders and with a possible test to the levels won yesterday.
The precise question is whether this will continue. In the short term, the technical setup continues pointing up. To have visibility in the medium term, we will still have to wait possibly at the beginning of next week.
The chances are high that the move that started yesterday will extend in time. To make this statement I rely on:
- The extreme accumulated overselling. The Crypto market has lost more than 35% of its average value in recent weeks. No rest. Technically it is a very deviated market at the bottom of its averages. This extreme situation makes it difficult to keep moving downwards and facilitates mean reversion strategies.
- The general conviction about the bright future that awaits this market makes it easier for many investors to take advantage of current prices to improve their average costs.
- The short-term ETH/USD chart shows a favorable profile for Ethereum. The only thing missing is a confirmation and taking the same scenario to higher time ranges. I remember that there have been no consistent market rises without Ethereum doing better than Bitcoin.
What's wrong with Ripple?
Ripple has been doing worse than Bitcoin and Ethereum for several days. Technically, the graph of the corresponding contracts crosses indicates that the situation will continue. It doesn't mean that Ripple won't go up if the market goes up, only that it will do it less.
BTC/USD is currently trading at the price level of $4,183. It is just below the EMA50 and also the 23.6% level of the Fibonacci retracement system of the drop from $6,400.
Above the current price, the most pressing need is to recover these two technical levels. If BTC/USD can overcome this obstacle, the second resistance zone is at $4,400 (price congestion resistance). The third resistance zone is at $4,636 (38.2% of the Fibonacci recession system) and where it is possible to find the SMA100.
Below the current price, the first support zone is at the $3.912 price level (price congestion support). The second support zone is at $3,466 (relative minimum). The third support zone is at $3,263 (price congestion support).
The MACD at 240-Minutes is right in the transition zone between bearish and bullish indicator. The openness and inclination suggest that can achieve the cross through the positive side. The upside potential remains intact.
The 240-Minute DMI shows the bulls taking control but not above the ADX line. This situation reduces the upside potential and calls into question the consistency of the rise.
The 240-Minute XRP/USD is currently trading at the $0.3858 price level. It did not manage to close above the EMA50 yesterday but did conquer the 23.6% level of the Fibonacci retracement system.
Above the current price, the first resistance zone is at $0.395 (EMA50). It is going to be very difficult for XRP/USD to overcome this zone. The $0.40 line is becoming an obsession for quite a few traders, and strong sales may appear. The second resistance zone is at $0.413 (price congestion resistance and 38.2% level of the Fibonacci retracement system). The third resistance zone is at $0.429 (price congestion resistance).
The MACD at 240-Minutes is slightly below the intermediate line of the indicator. The inclination and opening suggest upward continuity, but it is a little behind the development of Bitcoin.
The 240-Minute DMI shows that bulls are above bears but only hold a minimal advantage. Both sides of the market show weakness which would indicate to us that neither is set for a clear move to happen in the short term.
The 240-Minute ETH/USD quotes at the price level of $121.34. Yesterday it reached the EMA50 and the first price congestion resistance but failed to close above these hurdles.
Above the current price, the first resistance zone is at $124 (EMA50 and price congestion resistance). The second resistance zone is at $147 (SMA100). If Ethereum manages to reach this zone, it would be an opportunity to take the lead in the market. The third resistance zone is at $155 (price congestion resistance).
Below the current price, the first support zone is at $100 (relative minimum and psychological price level). The second support zone is at $94 (price congestion support). The third support zone is at $80 (price congestion support).
The 240-minute MACD is midway between BTC/USD and XRP/USD. ETH/USD is entering the neutral zone of the indicator with a suitable profile to overcome it.
The 240-Minute DMI shows bulls with a slight advantage over bears. The DMI+ is very close to crossing the upward ADX, which statistically represents a significant upward improvement.
BEST BROKERS TO TRADE CRYPTO
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