Altcoins have been raking in gains lately, but the question is: Can they hold on to those winnings and go for more?
XRP is leading the pack with an impressive 16% gain, followed by litecoin with a 10.13% increase.
Bitcoin Cash and ether are behind but still in the green with a 4.22% and 8.05% gain, respectively.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin is cruising inside an ascending trend channel on its 4-hour time frame, and the price has climbed past the mid-channel area of interest.It could be setting its sights on the channel top around the $8,000 levels from here, but the rally seems to be slowing. Bulls might be feeling exhausted as Stochastic is already indicating overbought conditions and is starting to turn lower.
The 100 SMA is still above the 200 SMA, though, so the path of least resistance is to the upside. In other words, the uptrend is more likely to carry on than to reverse, but a pullback to nearby support levels might need to happen first.
Ethereum has formed higher lows and slightly higher highs to trade inside a rising wedge pattern visible on its 4-hour time frame.Price just bounced off the wedge resistance and might be due for a dip to the support area around $190 next. Stochastic is on the move down to suggest that bearish momentum is present, but the oscillator appears to be changing directions halfway through.
Buyers might just be waiting to return at nearby support areas since the 100 SMA is above the 200 SMA to hint that more gains are underway. A break past the wedge top could set off a rally that’s the same height as the chart formation.
Litecoin is also consolidating inside a rising wedge pattern but is just on its way to test the resistance near the $47 mark.The 100 SMA is above the 200 SMA to suggest that bullish momentum is present and might even be enough to bust through the wedge resistance.
If that happens, litecoin could climb by roughly the same height as the wedge, which spans around $38 to $46. Just be careful since stochastic is already in the overbought region, hinting that buyers could use a break.
XRP has had quite the rally over the past few days but is still within bearish correction territory on its longer-term charts.Price is moving lower inside a descending channel on the daily time frame and is currently testing the 100 SMA dynamic inflection point. This moving average is below the slower-moving 200 SMA to confirm that the downtrend is more likely to resume than to reverse.
Also, the 200 SMA lines up with the next potential resistance at the 50% Fib, adding to its strength as resistance. A larger pullback could last until the 61.8% Fib or the channel top, and overbought conditions suggest that bearish pressure could take over 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!