Trends are picking up for altcoins these days, and it looks like more bears might join in at these correction levels.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin is testing this former resistance area around $10,400 that might hold as support moving forward. After all, it’s right smack in line with the 61.8% Fib that appears to be keeping losses at bay.Stochastic is already turning higher from the oversold region, suggesting that buyers are taking over while exhausted sellers take a break. In that case, bitcoin could recover to the swing high around $11,000.
However, the 100 SMA is still below the 200 SMA to indicate that bearish momentum is present and that support levels are more likely to break than hold.
Ethereum seems to have completed its break-and-retest of the area of interest around $400. Price is now setting its sights on the next downside targets marked by the Fibonacci extension tool.The 38.2% level is just close by at $326.73, but stronger bearish momentum might take ETH down to the 50% level that lines up with the swing low. The next potential support is at the 61.8% Fib or $284.70 then the full extension at $216.66.
Moving averages confirm that further downside is in the cards, but Stochastic is indicating exhaustion among sellers and a potential takeover by bulls.
Litecoin is just getting started on its attempt at a retest of the broken support around $47. Applying the handy-dandy Fib tool shows that this is close to the 61.8% retracement level.
Technical indicators are showing that the selloff is likely to resume at some point. The 100 SMA is safely below the 200 SMA to reflect the presence of selling pressure while Stochastic is starting to move south from the overbought zone.
If sellers are eager to take over, a shallow correction to the 38.2% Fib at $44.50 or the 50% level at $45.39 could be enough to keep gains in check.
XRP might also be in for a break-and-retest situation as it recently fell through an ascending trend line and is waiting for more bears to join in.Applying the Fibonacci retracement tool on the breakdown shows that the 50% level lines up with the broken trend line support that might hold as a ceiling. This is also in line with the 100 SMA dynamic resistance, which just crossed below the 200 SMA.
Stochastic hasn’t quite reached the overbought zone yet but is starting to turn lower, suggesting that sellers are eager to take over. In that case, the lower Fibs might be enough to hold as resistance and push XRP back to the swing low!
If this is your first time checking out crypto charts, keep in mind that there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!