- The announcement surprised a market that loses momentum quickly.
- Bitcoin and Ethereum enter a zone of a strong gravitational downward spiral because of moving averages.
- In the next few days, the battle will take shape of “dogfighting” and will impact the medium term.
The news of the day is undoubtedly the announcement made yesterday by the American company Coinbase at the close of the American session. The users of the Coinbase Pro exchange will now be able to transfer and trade XRP.
It was a long-awaited announcement that came as a surprise without much being said in previous days. The XRP/USD pair shot up 10% and dragged part of the market with it.
At the time of writing, XRP has lost half of its gains against the primary assets as profits are reduced. Many secondary Cryptocurrencies continue to rise sharply, such as ENJ (Enjin Coin) with +135% or BAT with 35%.
The asset that seems weakest is Ethereum, seemingly ignoring the launch of the Constantinople layer scheduled for Thursday, February 28th. This market has accustomed us to this type of spikes related to news of the implementation. But in this case, it is possible that markets already discounted this fact in the first launch attempt in January and now cut another possible delay.
In the four-hour chart, the price has gone to look for the zones of the technical confluence of the typical moving averages, reason why it enters in a "gravitational" zone that is going to condition the price in the next days.
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3.789 price level after failing to break the 50-period exponential moving average by $3.845. The price is now in a compression zone between this exponential average and the simple average of 100 periods at $3.740.
BTC/USD, therefore, enters an area with much capacity to trap the price which complicates enough that the increase in volatility seen during the weekend remains. The most likely scenario for the rest of the week is that of slightly bullish laterality in a range between $3,900 and $3,650.
Above the current price, the BTC/USD pair has a first resistance level of $3.842 (EMA50), then a second resistance level at the price level of $3.890 (congestion resistance) and a critical third resistance level at the price level of $4.050 (congestion resistance).
Below the current price, the first support level is at $3,740 (SMA100), the second support level is at $3,790 (price congestion support), and the third support level is at $3,600 (SMA200 and price congestion support).
The MACD on the 4-hour chart shows a profile similar to that seen on the BTC/USD pair, although in this case, does not show a possible bearish development in the short term. In this case, a quick look at the indicator’s daily range shows us that the pair is at a crucial decision point in the medium term.
The DMI in the 4-hour range shows us that bears have little self-confidence, as they respond to downturns with a decrease in activity. On the other hand, the bulls remain in a sustained sideways range and react quickly to any bullish attempt.
ETH/USD 240 Minute Chart
The ETH/USD pair is currently trading at the $137 price level. Yesterday's rally was halted in the dry as it reached the $142.5 price congestion resistance level.
Ethereum is trapped between the main moving averages, so its movement will be limited.
The critical moment for the Ethereum may come on Thursday, with the release of the Constantinople version on the MainNet. Due to the failure of the first attempt, the market is likely to wait for a confirmation before reacting.
Above the current price, the first resistance level for the pair is at the $142.5 price level, then the second resistance level is at $151 (price congestion resistance), while the third resistance level is at $161.5 (price congestion resistance).
Below the current price, the first support level is at $135 (SMA100), while the second support level for the ETH/USD pair is at $131 (price congestion support). If ETH/USD loses this support level, the drop could accelerate to the third level of support in the $121 zone (price congestion support and SMA200).
The MACD on the 4-hour chart shows a profile similar to that seen on the BTC/USD pair, although the, in this case, does not show a possible bearish development in the short term. In this case, a quick look at the indicator, but in this case in the daily range, lets us see that the ETH/BTC pair is at a crucial decision point in the medium term.
The DMI in the 4-hour range shows bears with little self-confidence, as they respond to downturns with a decrease in activity. On the other hand, the bulls remain in a sustained lateral range and react quickly to any bullish attempt.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.32 price level, after reaching the $0.34 level yesterday as Coinbase Pro announced the availability of this token on the trading floor.
At the opening of the European session, XRP has lost momentum and has come down to seek support at the EMA50 at the current $0.32 price level. For now, it is reluctant to enter the moving averages attraction zone.
Above the current price, the first resistance level for the XRP/USD pair is at $0.328 (price congestion resistance), while the second resistance level is at $0.335 (price congestion resistance). Above this second resistance, an abyss opens above XRP to the third resistance at $0.39 (price congestion resistance).
Below the current price, the first support level is at $0.319 (EMA50 and price congestion support), then a second support level at $0.313 (SMA100) and a third support level at $0.309 (SMA200 and price congestion support).
The MACD on the 4-hour chart shows an inverse profile to that seen in both Bitcoin and Ethereum. The pattern shows a bullish cut in development but weakened by its situation in the negative zone of the indicator. This situation would change fast if we could cross to the upside area of the MACD.
The DMI on the 4-hour chart shows the bulls in control of the situation and entirely convinced of yesterday's bullish movement. On the other hand, the bears are withdrawing but retaining trend strength that would allow them to take over in case the bulls give up the leadership.
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