Cryptocurrencies seem to be taking a break from their rallies recently. Are they about to resume the climb anytime soon?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin is in consolidation mode as price formed higher lows and lower highs inside a symmetrical triangle on its 1-hour time frame.Bulls are testing the top of the triangle, and charging past this resistance level could be enough to confirm that the longer-term climb is carrying on.
Stochastic is closing in on the overbought zone, though, so a dip back to the triangle bottom could follow. Still, the 100 SMA is above the 200 SMA to suggest that support levels are more likely to hold than to break.
Ethereum completed its retest of the broken resistance around the $300 mark, and is resuming the climb to the upside targets marked by the Fibonacci extension tool.Price is hanging out around the 38.2% level that’s close to the swing high but might still have enough bullish energy to go for the 50% Fib at $510. Stronger buying momentum could take it up to the 61.8% extension at $557 or the full extension at $709.
The 100 SMA is increasing its lead over the 200 SMA to reflect strengthening bullish pressure while also holding as dynamic support. However, buyers might need to take a quick breather since Stochastic is nearing overbought levels.
Litecoin is also in consolidation mode as it formed lower highs and slightly lower lows inside a falling wedge on its short-term chart.
Price is testing the wedge top and might be in for an break higher since the moving averages suggest that the path of least resistance is to the upside. In that case, litecoin could climb by the same height as the chart formation that spans around $57 to $65.
Just be careful when going long, though, since Stochastic is already indicating overbought conditions or exhaustion among buyers. If the resistance holds, you might be better off waiting to buy at the wedge support instead.
XRP is still cruising inside its ascending channel on the 4-hour time frame and is making its way to the top.If the resistance holds once more, XRP could dip back to nearby support areas at the mid-channel area of interest or the channel bottom at 0.2400.
Stochastic is on middle ground and barely offering strong directional clues at the moment, but the 100 SMA has crossed below the 200 SMA to suggest that price might break below the middle of the channel for now.
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!