Altcoins seem to be pausing from their tumble these days as longer-term support areas are holding. Will we see a big crypto bounce next?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin might be done with its slide as it forms what appears to be a double bottom pattern on its short-term chart.Price has yet to test and break past the neckline around the $6,000 mark to confirm that a reversal from the downtrend is due. However, the 100 SMA is still below the 200 SMA to indicate that the selloff is more likely to resume than to reverse.
Also, stochastic is turning lower without even indicating overbought conditions, hinting that bears are eager to return.
Ethereum formed lower highs and higher lows to consolidate inside a symmetrical triangle pattern on its 1-hour chart. Price is currently testing the top and might be considering a break higher.
If so, ethereum could climb by the same height as the chart formation, which spans around $95 to $143. Price has to breach the 100 SMA dynamic inflection point that lines up with the triangle resistance, though.
This faster-moving MA is below the 200 SMA to suggest that resistance is more likely to hold than to break while stochastic turning lower confirms that selling pressure could pick up.
Litecoin is also in consolidation mode as it formed a symmetrical triangle on its short-term chart and is testing the resistance. Nope, you ain’t seeing double!Bears seem to have the upper hand as the 100 SMA is below the 200 SMA, with the former adding another layer of resistance at the triangle top.
Stochastic is already making its way south, so price could follow suit as bearish momentum picks up. In that case, litecoin could slip back to the bottom of the triangle around $30.
XRP has been trending lower on its longer-term charts but might find some support at the bottom of its descending channel. If so, price could recover to the top around .3000 or at least until the mid-channel area of interest.
Stochastic is already turning higher after reaching the oversold region, suggesting that buyers are ready to take over while sellers take a break. However, the 100 SMA is still below the 200 SMA to signal that the downtrend is more likely to gain traction.
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!