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Market data is provided by the HitBTC exchange.
United States banking giant JPMorgan Chase, whose CEO has been one of the most vocal critics of cryptocurrencies, has announced the launch of its own cryptocurrency, named “JPM Coin.” This clearly shows that many criticize the technology as they do not understand it, but once they realize its potential, they readily become a part of the space.
As the market matures, it will differentiate between cryptocurrencies. Token that do not have anything concrete to offer will fall by the wayside as others with a strong use case will reward their investors. Barry Silbert, CEO and founder of Digital Currency Group and Grayscale Investments, believes that most digital tokens “will go to zero.”
Niall Ferguson, British economic and financial historian and author of 14 books, said that Bitcoin is likely to be viewed as digital gold because its performance is not correlated to any other asset class. However, he does not see cryptocurrencies replacing fiat currencies completely.
With most news turning positive, is it a good time to buy a few of the major cryptocurrencies? Let’s find out.
Over the past week, Bitcoin (BTC) has been giving up ground. Though the fall is not sharp, it shows a lack of demand at current levels. Both the moving averages have turned flat and the RSI is in the neutral zone, which points to a likely consolidation.
Our view of a range bound trading action will be invalidated if the BTC/USD pair breaks out of the downtrend line. Above the downtrend line, a rally to $4,255 is likely. We expect a strong resistance at this level. A breakout of $4,255 will complete a double bottom pattern that has a target of $5,273.91.
If the bears sink the digital currency below the 20-day EMA, a drop to $3,355 and below it to $3,236.09 is possible. A break of the yearly low will resume the downtrend and can result in a decline to $3,000 and below it to $2,600.
We shall wait for the price to sustain above both the moving averages and the downtrend line before proposing a trade in it.
Ethereum (ETH) continues to face resistance at the 50-day SMA. It has become a major roadblock for the bulls that needs to be crossed quickly, else we anticipate a fall to $116.30 and if that gets broken, a retest of $103.20.
Both the moving averages are flat and the RSI is just above the midpoint, which points to a consolidation. The ETH/USD pair will pick up momentum on a breakout and close (UTC time frame) above $134.50.
The next target on breaking out of $134.50 is $167.32. Considering the large target potential, we suggest traders maintain their stops at $100. We might recommend closing the position if the pair turns down and sustains below $116.30.
Ripple (XRP) has been finding support close to $0.295 for the past three days, but the bulls are struggling to break out of the downtrend line.
A strong breakout of the downtrend line will carry the XRP/USD pair to the next overhead resistance of $0.33108. The 50-day SMA is also located just below this level. Hence, we expect this to act as a major roadblock. However, if the bulls scale this level, the probability of a rally to $0.40 increases. Therefore, we might propose long positions on a close (UTC time frame) above $0.33108.
Conversely, if the price turns down from the current levels or from one of the overhead resistances, a retest of $0.27795 is possible. A break of this level will result in a fall to the yearly low of $0.24508.
EOS is trying to bounce from just above $2.70. The bulls will again attempt to break out of the overhead resistance zone of $3.05 to $3.2081. If successful, a rally to $3.8723 is probable. The 20-day EMA is turning up and the RSI is also in positive territory, which shows that the path of least resistance is to the upside. Hence, traders can keep the stop loss on long positions at $2.30.
If the price struggles to break out of the overhead resistance zone, partial profits can be booked closer to $3.20 and the remaining can be held with the stop at breakeven.
On the contrary, if the EOS/USD pair turns down from current levels, it can take support at the moving averages, failing which the drop can extend to the critical support at $2.1733. A break of this support can result in a plunge to the yearly low of $1.55.
Litecoin (LTC) found support close to $40. The bulls are currently trying to resume the uptrend and break out of the overhead resistance of $47.2460. If successful, the next target to watch on the upside is $56.910.
Contrary to our assumption, if the LTC/USD pair fails to breakout of $47.2460, it might turn down and retest the support at 20-day EMA. Therefore, traders can book partial profits closer to $47 if they find the pair…