I’m seeing mixed price action in the crypto charts these days! Which among these coins look poised for more gains?
Bitcoin has been moving sideways, pacing back and forth between support at the $7,500 level and resistance around $8,020. Price just recently came off a test of resistance and might make its way back to the bottom of the range while stochastic also heads south.
However, the 100 SMA might be attempting a bullish crossover from the 200 SMA to show that buyers are taking the upper hand. In that case, another test of the range resistance might follow, possibly even leading to a break higher. If that happens, bitcoin might be in for a climb that’s the same size as the rectangle yo!
Ethereum busted through the short-term descending trend line connecting the highs since the start of the month, indicating that bulls have taken control of the game. Price has also made a retest of the broken resistance, which held as support.
With that, ethereum could be setting its sights on the next upside targets shown by the Fibonacci extension tool. Stochastic is turning lower to show a return in selling pressure, though, and the 100 SMA is still below the 200 SMA to hint that the path of least resistance is to the downside.
Litecoin has been on a tear these days, trading inside an ascending channel for more than a month then breaking to the upside. A steeper climb may be in the works, my friends!
The 100 SMA crossed above the longer-term 200 SMA to confirm that momentum is on the bulls’ side, but price might need to make a quick retest of the broken channel top before heading further north. Stochastic reached the overbought region, after all, so buyers might be feeling exhausted.
XRP has formed lower highs and lower lows to create a falling wedge pattern on its 1-hour chart. Price is hovering around the resistance and might be due for a move back to the bottom as stochastic is starting to head south.Also, the 100 SMA is below the 200 SMA to indicate that selling pressure is present, and these dynamic inflection points are just above the wedge top to add more layers of resistance.
A break above these, however, could signal that buyers have regained the upper hand and could push for a rally that’s the same height as the wedge.
Just be warned, there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!