The major cryptocurrencies continue to show bullish momentum after establishing a new short-term uptrend this week. The top coins are all holding on to the bulk of their recent gains, even as most of them entered consolidation patterns (which is expected after any bullish session).
Only Ripple is lagging behind the broader market, but the immediate outlook remains positive despite the bearish long-term picture.
In my mind, I see a retracement coming sometime within a week or two. Still, the recent gains have given the crypto market a much needed push upwards, elevating the total market cap by about 8% from $120 billion to $130 billion.
Bitcoin
Bitcoin entered a consolidation pattern after touching the longer-term resistance zone between $4,000 and $4,050. The momentum indicators hint at further consolidation, and in light of a hostile long-term setup, traders should wait for the overbought readings to be cleared before entering new short-term positions.
Below the initial $3,800 level of support, further levels are found near $3,600, while the next resistance zone is close to $4,050. The short-term uptrend seems to remain intact for BTC, so traders should enter positions with care.
Ethereum
Ethereum entered a shallow correction after hitting the resistance zone near $145, but the price action and volume patterns continue to support the bullish short-term case. The $160 price level remains a viable target for bulls, but the momentum indicators continue to show ETH is overbought. Support levels are found near $130 and $112, while above $160, resistance is found near $180.
As long as Ethereum remains above the 50-day EMA, I see no reason for a sharp reversal.
Litecoin
Litecoin pushed past the $50 level and hit the long-term resistance zone near $51, which coincides with the 200-day EMA. As LTC is overbought, the bearish long-term setup continues to warrant caution for bulls here.
That said, the rising short-term trend is intact, and should the coin clear the overbought momentum readings, I see no reason for the upwards momentum to stop. Support levels are now found near $47, $44, and $38, around the 50-day EMA, while the next major resistance zone is ahead near the $51 price level.
Ripple
While the leadership of the rally is still healthy, Ripple continues to lag behind, fighting with a declining trendline that stopped its recent rally attempt. XRP is holding up above the $0.32 level, but it’s stuck below the recent swing high.
As long as XRP remains close to its 2o-day EMA and price closes off the day above $0.33, I argue Ripple’s momentum remains bullish and a sudden move upwards could be seen. It all depends on the overall market.
From a long-term perspective, Ripple’s technicals remain negative, and a move towards the $0.28 and $0.26 levels remains likely. Further support zones are found near $0.32 and $0.30, while the short-term target is still ahead near the 50-day EMA around $0.3550.
Safe trades!
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.