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ANALYSIS

Technical Analysis: Ripple Breaks Out Amid Ethereum Upgrade

Published 14 hours ago on October 16, 2017

The major cryptocurrencies are on the rise once again today, with Ethereum’s major Byzantium update being in the center of attention. The second largest blockchain network has been updated through a hard fork, as usual, and the successful lock-in led to an initial surge in the price of the ETH token. The digital currency recovered above the $330 level after Sunday’s pull-back, but so far it failed to durably break-out above the prior swing high just above $340.

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With the long-term momentum readings still being neutral, the coin could be on the verge of testing the $380 resistance soon, with the all-time high near $400 being the last major technical obstacle. Below $330 further support is found at $300 and $285.

ETH/USD, Daily Chart Analysis

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Bitcoin is also on the rise after dipping below $5500 during the weekend, and the most valuable coin is joined in the rally by Ripple, which most likely finished its short-term correction and could be ready for another leg higher. The other majors are also generally higher, with NEO and IOTA being ahead of the pack, while the rest of the market trading near unchanged. As the broad rally seems to be well and alive, let’s see how the short-term charts are shaping up.

Bitcoin

BTC/USD, Daily Chart Analysis

BTC continues to trade in a short-term correction after last week’s break-out to new all-time highs, and the coin’s price is right at the $5700 level after hitting a low just above $5400 during the weekend. The MACD indicator is returning to neutral territory, and another leg higher in the strong uptrend is possible in the coming days, with a likely test of the $6000 long-term target. As the currency is getting long-term overbought, the risk of a deeper correction is rising, but the trend is intact, with key support levels below $5400 at $500 $4650 and $4400.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin surged past the key $64 resistance after Friday’s break-out, and the coin is now back in the rising long-term trend channel, as we expected. LTC is now back near the key level after yesterday’s pull-back, but the short-term trend is intact and a rally towards $75 is likely in the coming period, as daily MACD is in neutral territory, with support levels below $56 at $51 and near the $44 level.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is trading in a narrow consolidation pattern just above $300, within the broader correction formation that has been dominant for more than a month now. The coin is still bullish regarding the long-term picture, but short-term traders should wait for a move before entering new positions, as further sideways price action is possible. Resistance is ahead at $330, $360, and $400 while support is found at $300 and $265.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP moved out form its short-term consolidation pattern and rocketed higher to the $0.30 level today in early trading as we expected, but for now, the key resistance zone held the coin back. Above $0.30 another strong level is found at $0.32, but given the strength h of the trend and the bullish long-term picture, a break above that level is likely. Support is now found at $0.26, $0.24 and around the $0.22 level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is still relatively weak compared to the other majors, and it remains stick below the short-term resistance level at $12.50. With further strong resistance ahead around the $13.50 level, bulls have a tough road ahead, but the long-term picture is still positive for investors. Support is still found at $11 and $9, while more supply is expected at $16 and $18.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is still below the key $100 level despite breaking out above the declining trendline last week. The neutral long-term momentum points to a coming test of the $125 level as well, as the coin completed a deep, but orderly correction. Strong support is found near $80 and $68, while the all-time high is ahead just above $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO finally found support within is volatile correction pattern around the $27 level, and the coin looks ready to bounce back above the $30 resistance, amid the broad rally in the segment. The $25 level is still the primary support with another strong level below that near $22, while above $30 resistance is ahead at $34 and $40.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is still struggling to get back above the $0.45-$0.48 support/resistance and, and although the long-term picture remains encouraging, traders should wait with new positions until a short-term uptrend is established. Resistance levels are ahead at $0.56, and $0.64, while support below $0.45 is found near $0.35.

Featured image from Shutterstock

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