- ETH/USD brings joy to the market and takes the lead.
- BTC/USD takes positions for continued bullishness.
- XRP/USD plays at absent-mindedness but manages to stay in the game.
The weekly series of technical articles covering the Top 3 Cryptocurrencies begins with the market in a situation that I previously mentioned as possible throughout the week. In several of my pieces, I expressed the sensation that we could see substantial price increases, although I also exposed the necessary conditions so that those increases could be consolidated.
At the end of the American session on Friday, the crypto exchanges grids were spectacularly painted in green, highlighting the Litecoin with rises above 35% in some moments. The weekend left the subject on standby and today, in the opening of the Asian market we see profit collection.
For now, we are reaching key support levels in the short term. These are price levels considered “positive” since if they are respected, in many cases, they become levels where stop orders proliferate.
In general, it seems that the consolidation process is going to be slow and at least during today’s day the market may show weakness, but in the middle of the week, we can see again strong bullish activity.
BTC/USD 240 Minute Chart
The BTC/USD is currently trading at the $3,592 price level after leaving the high of $3,707. The current price level is right at a concentration of congestion support price essential for development in the short term.
Above the current price, the first target is at the $3,690 price level (price congestion resistance and downstream channel ceiling). On the bullish side, this resistance is the most important in weeks. Overcoming it would free the BTC/USD from the bearish environment and put it in a much more positive scenario. The second bullish target is at $3,900 (price congestion resistance). The third bullish target is at $4,050 (price congestion resistance). The level from which the movement could accelerate a lot is at $4,200 (price congestion resistance).
Below the current price, the first support level is at $3,590 (price congestion support). Below this support level, we find an accumulation of moving averages (EMA50, SMA100, and SMA200) until we reach the next level of price congestion support at $3,465. Given the strength of the price support, a break down would be a signal of extreme weakness. In that case, the short-term bearish target would be around $3,200 (base of the bearish channel).
The MACD shows a bearish cross profile after Friday’s strong move. It rose quickly and now it is time to normalize things. In these extreme situations, the MACD loses reliability as the price may continue to rise even though the lines are pointing down.
The DMI helps us see the magnitude of the rise we saw at the end of the week. The bulls reached positive levels not seen in more than six months, while the bears went to minimum levels but already seen on each occasion that the market has insinuated upward movements. It is clear that the bears do not bail anything out and that none of them wants to get caught if the bulls take out the upside strength they have inside.
ETH/USD 240 Minute Chart
The ETH/USD pair is currently trading at $108.13, leaving the intraday high at $110.27. The early morning movement of the European session has allowed the Ethereum to surpass the EMA50 and for a moment the SMA100. This is an excellent demonstration of bullish strength.
If ETH/USD manages to close the current candle above the SMA100, the crucial next objective is at the $120 (SMA200) price level, as an intermediate level towards the third level of price congestion resistance at $131.
Below the current price, the first support level is at the EMA50 at $106.65, while the second support level is at $105.5 (price congestion support). The third level of support is at $103 (price congestion support).
The MACD on the 4-hour chart has gained momentum, although the opening between the lines is minimal. It is necessary to follow the evolution carefully to see if it can overcome the 0 levels of the indicator.
The DMI on the 4-hour chart looks much better than the BTC/USD pair. The bulls have managed to surpass the level of the bears and are shooting at levels not seen since late last December.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.302 price level. The achievement of the XRP in Friday’s move is to go past the $0.30 level, which allows it to remain in a potentially bullish zone, but nothing more. In this respect, the XRP’s behavior is disappointing as much more was expected from it. If a few weeks ago I highlighted its strength to pierce upward levels, in this new momentum precisely stands out on the contrary and is the only one among the Top 3 that does not manage to exceed all moving averages.
Above the current price, the first resistance level is $0.308 (price congestion resistance). The second resistance level is at $0.316 (SMA200), while the third level is at $0.334 (price congestion resistance). The XRP would enter bullish mode above the $0.39 price level (price congestion resistance).
Below the current price, XRP/USD has first level support at $0.30 (price congestion support), then second level support at $0.293 (price congestion support) and last level support at $0.288 (price congestion support).
MACD shows a more advanced development than both Bitcoin and Ethereum. It is crossed downwards at a point where it usually happens that it crosses up again. We could see new rises at the end of the week.
The DMI is a reflection of the situation we see in the price. Bears stay above the ADX line, which gives it upside potential. The bulls, on the other hand, seem to dare to stand against the bullish side of the XRP and increase their level of activity.