Qadir AK
Though the cryptocurrency market is trading with mixed signals, major cryptocurrencies like Bitcoin, Ethereum, XRP, LUNA among others are trading with a positive price action.
Today, after the Bitcoin price battled against bears for several days, it looks to have found the stability with a slight bull run. As the flagship currency finds a recovery zone, so do other altcoins.
Bitcoin Price Gears Up !
Over the last three months Bitcoin price has been trading in an ascending parallel channel and this channel is formed whenever the three high highs and higher lows trend lines are connected.Â
Bitcoin saw a recovery of 40% upswing when the currency formed lower trend lines last two times. The main reason behind these lower trend lines was the closure by the candlesticks above the 200 three-day Simple Moving Average (SMA).Â
This bullish signal is not enough, as the Bitcoin needs to surpass the 200 three-day SMA and head towards the daily supply zone which will extend the price action from $42,153 to $43,981.
If the price action sees trading with the above mentioned supply zone, the currency will surge by 9%.
If the bulls fail and the price action see declining with an increased selling pressure, then there will be a daily candlestick close below $34,752 support level whipping out the ascending parallel channel along with bullish trend.
At the time of reporting, Bitcoin is trading at $38,650 with an increase of 1.71% over the last 24hrs.
Ethereum To Reclaim $3,000 Level
While Ethereum is hovering between $2,800 to $3,000, the price action is pointing towards slight increase in selling pressure. Though this action looks like a bearish pull, if the trend lines of two higher highs and three higher lows are joined there will be an ascending parallel channel.
The latest recovery from lower trend lines is quite positive, but the leading altcoin needs to step ahead of the 100-day SMA at $2,908 and the 50-day SMA at $3,061 for the price action to extend towards a bull run. Other than this, the currency should also make $3,129 as a support zone.
If the largest altcoin manages to form these actions, then the price can see a positive move towards the 200-day SMA at $3,472 and doing so will grab more than 21% surge from the current trade.
At press time Ethereum is changing hands at $2,806 with a surge of 1.51% in the last 24hrs.
Ripple’s XRP Moves Beyond Sell Sell-Side Pressure
Ripple’s XRP slidded below the support level at $0.601 to create a sell-stops last formed in late January. This move successfully sidded the selling pressure pointing towards a reversal in the coming days.
The chart below depicts that the recovery is quite strong. If this happens, there will be a 50% retracement level trading at $0.733 and forming a local top.
Supporting this kind of price action is the 2022 volume control at $0.768. Hence, the range between $0.733 & $0.768 is where the investors should think about booking profits.
At the time of writing, XRP is valued at $0.613 with a jump of 3.43% over the last 24hrs.
However, if Bitcoin price declines then it will aslo drag the XRP price below a daily candlestick close of $0.601 as a support level. In such a scenario, XRP price might bottom at $0.548 support level.
