Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, Tron, Bitcoin SV, Cardano: Price Analysis, Jan. 23

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The market data is provided by the HitBTC exchange.

Adena Friedman, president and CEO of Nasdaq Inc., believes that cryptocurrencies will have an important role to play in the future, if they can integrate into the economy and find greater practical utility. Clarity on regulations and governance can provide the necessary boost to the nascent asset class.

One country that could be at the forefront of retail adoption of cryptocurrencies is Japan. Currently, most transactions in Japan involve paper bills and metal coins, however, the nation is attempting a shift towards a cashless society.

The top banks in Japan are working on the development of blockchain-based payment networks that can be operational in time for the Summer Olympics in Tokyo by 2020. If successful, the third largest economy of the world could bring about a change that will force other economies around the world to take notice.

Several smaller countries are also trying to gain leadership in this space. Georgia has migrated most of its land registry to blockchain and the tax system might soon follow.

The country also subsidizes local crypto companies via various means, such as discounted electricity rates, tax-free zones and land at nominal prices. Georgia hopes to beat the other crypto-friendly nations like Malta and Bermuda and become an international leader in crypto.

While the fundamental factors are improving by the day, the price is not following suit. However, a Bloomberg analyst expects Bitcoin (BTC) to rally in the short term, based on a study of technical indicators. What does our study forecast? Let’s find out.

BTC/USD

The volatility in Bitcoin (BTC) has shrunk over the past few days. This period of low volatility will eventually lead to a range expansion. The longer the time spent in a tight range, the stronger will be the breakout or breakdown from it.

It is difficult to predict the direction of the break. During the previous period of low volatility from mid-September to mid-November 2018, the attempt to break out on Oct. 15 failed. After that, the BTC/USD pair broke down on Nov. 14, resulting in a quick drop from $6,480.54 to $3,620.26 within a short span of time.

The important resistance to watch on the upside is the downtrend line, and above it the $4,255 mark. A break out of these levels will signal a probable trend reversal.

On the other hand, a breakdown of $3,236.09 will resume the downtrend. The next support on the downside is the psychological level of $3,000. We shall wait for an upside range expansion before recommending a long position.

XRP/USD

Ripple (XRP) bounced from the area of $0.30550 on Jan. 22. This shows demand at lower levels. However, the failure of the bulls to break above the downtrend line and the moving averages means that buying dries up at higher levels. The down-sloping moving averages and the RSI below the 50 level suggest that supply exceeds demand.

XRP

The balance might tilt in favor of the bulls if the XRP/USD pair sustains above the moving averages. That would increase the possibility of a rally to $0.4. Based on that, we suggest long positions on a close above $0.336, with a stop loss of $0.305.

Conversely, if the price turns down from the downtrend line and breaks below $0.305, a drop to $0.27795 will be likely.

ETH/USD

Ethereum (ETH) dipped below the support of $116.3 again on Jan. 22, but the bears could not capitalize on the breakdown. They could not force the price to the next lower support of $100. This shows that there is buying at lower levels.

ETH

Now, if the ETH/USD pair breaks out of the moving averages and scales above $134.5, it will indicate strength. If the price doesn’t drop below $116.3 again within the next couple of days, we might suggest long positions with an allocation of about 30 percent of the usual size. The remaining positions can be added once the price is above $134.5.

On the other hand, if the cryptocurrency fails to rise above the moving averages, the bears will again attempt to break the support at $116.3 on a closing (UTC time frame) basis.

BCH/USD

The bulls haven’t been able to push Bitcoin Cash (BCH) above $141 since breaking down of it on Jan. 10. On the downside, $121 has been acting as a strong support. Though the bears had broken below this level during intraday trading, they haven’t been able to close (UTC time frame) below this support in the past few days.

BCH

We expect the bulls to attempt to break above $141. If they are successful, the BCH/USD pair can rise to $177.3, and above it to $239. We might suggest a long position above $141. Until then, we remain neutral on the coin.

If the bears defend $141, the cryptocurrency will remain stuck in the tight range of $120–$141.

EOS/USD

EOS bounced off the support at $2.3093 on Jan. 22, but the…

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