Cryptocurrencies seem to be showing signs of life as some chalked up gains over the past few days. Here’s how the charts are looking.
Check out this ranking of bitcoin and its buddies for the past seven days:
XRP is ahead of the pack with a 2.78% gain while litecoin is lagging behind and in the red by 1.35% so far.
Bitcoin still seems to be on a steady downtrend as price has formed lower highs and lower lows to create a short-term descending channel. Price is hovering close to the mid-channel support zone, but it still seems to have its sights set on the very bottom around $7,000.
However, the 100 SMA is above the 200 SMA to hint that support is more likely to hold than to break while stochastic is pulling up from the oversold region to confirm a return in bullish pressure.
Ethereum is also trending lower inside a descending channel on its 1-hour time frame. Price is finding support at the mid-channel area of interest, though, and could be due for a move back to resistance from here.
The 100 SMA is above the 200 SMA to signal that bulls could still charge, and stochastic is also confirming that bullish momentum is present. Then again, the gap between the moving averages is pretty narrow so a bearish crossover might be looming.
Litecoin made a fresh breakdown from its symmetrical triangle consolidation pattern to indicate that sellers have won the round. Price could be in for a slide of the same height as the chart formation, which spans $43 to $51.
Moving averages show that litecoin is the most bearish among the bunch:
Consolidation alert! XRP is forming a triangle pattern on its 1-hour chart and is currently testing support. A bounce could take it back to resistance, and technical indicators seem to indicate that this might be the case.
Stochastic is heading higher so price might follow suit while buyers have some energy left while the 100 SMA is safely above the 200 SMA. Still, the oscillator is approaching overbought territory to reflect potential exhaustion among buyers soon.
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!