Many cryptocurrencies on the market are showing signs of indecision, and investors are waiting on the sidelines for Ethereum, XRP, or Litecoin to finally breakout.
Ethereum, XRP, and Litecoin Remain Stagnant
Market participants alike are growing impatient about the future of the cryptocurrency market.
Last Friday, crypto Twitter was flooded with bearish views after $30 billion were wiped from the market. Today, the overall outlook appears to have turned bullish following the price action seen over the past few hours.
For this reason, Crypto Briefing has been paying close attention to Ethereum, XRP, and Litecoin to determine the direction of the trend. These three altcoins are, however, still contained within narrow trading ranges and have yet to provide a clear sign of where they are headed next.
Ethereum, for instance, has been mostly trading between $210 and $198 in the last week. Although its price seems trapped in an ascending parallel channel since March’s Black Thursday, it is not clear whether it will continue to behave as it did over the last three months.
If the same price action were to continue, it is reasonable to expect a bullish impulse that sends Ether above the overhead resistance. The upswing could be meaningful enough for a full-blown rebound to the middle or upper boundary of the channel.
Nonetheless, a spike in sell orders behind the smart contracts giant might jeopardize the bullish outlook.
If this were to happen, the most significant areas of support to watch out for are the $198 barrier, the lower boundary of the ascending parallel channel, the 23.6% Fibonacci retracement level, and the 100-day moving average.
A daily candlestick close below this support cluster could be catastrophic as it may trigger a sell-off pushing Ether down to $158 or lower.
Like Ethereum, Ripple’s XRP also entered a stagnation phase, but for a more extended period. The cross-border remittances token has been trading within the 23.6% and 38.2% Fibonacci retracement levels since May 11.
The length of this consolidation period indicates that momentum for an explosive breakout has been building up slowly. However, the inability to determine the direction of the trend makes the area between these Fibonacci retracement levels a no-trade zone.
A candlestick close above resistance may see XRP jump towards the 200-day exponential moving average that is hovering around $0.223. Conversely, moving past support could see the price of this cryptocurrency plummet to $0.17 or $0.16.
Along the same lines, the 23.6% and 38.2% Fibonacci retracement levels are critical to Litecoin’s trend. Trading within this area poses considerable risk since it is unknown whether bulls or bears will take control of LTC’s price action.
If a clear break to the upside comes first, the next essential resistance walls sit around the 100-day moving average and late April’s high of $51.
But if the bears jump in to flush out weak hands, Litecoin may drop to $38 or $35.
Understanding the importance of the support and resistance levels mentioned above could allow anyone to minimize risk while profiting from the next significant price movement of any of these altcoins.
A good dose of patience, however, is a must since the ongoing consolidation phase may prolong.
The post Investors Sidelined as Ethereum, XRP, and Litecoin Trade Sideways appeared first on Crypto Briefing.
This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.