Altcoins Price Analysis: Positive Affect
Last week there were milestone events for a leader of the cryptocurrency market — bitcoin which positively affected on all crytpocurrency industry.
On April 26, miners mined 17-millionth bitcoin. The first cryptocurrency issue is limited to 21 million coins, respectively, the miners left to mine about 19% of the total number of BTCs or four million coins. This fact reminded investors of the scarce nature of bitcoin, which significantly affects its investment attractiveness.
Also last week CBOE and CME had record trading volumes of bitcoin futures. The number of transactions at CBOE exceeded three times the average daily rate, and on the Chicago Mercantile Exchange, the number of transactions with bitcoin futures doubled. These volumes are close to the December values, which indicates the return of interest of institutional investors to bitcoin.
As for Ethereum, after implementation of Casper update, Vitalik Buterin announced on his Twitter launch of sharding. The developers of Ethereum are sure that this technology is the best option for scaling the network of this cryptocurrency.
According to daily chart the price reached the level of 61.8% Fib from the previous downward movement.
We may expect further consolidation of the price and transition to the second wave of Elliott. In this case, the target for this movement will be the range $ 535 - $ 495.40, which coincides with the level of 61.8% Fib of the first wave. Next step will be the third wave.
If the price is able to consolidate above the level of $ 711.07, then it will be possible to assert about the strengthening of bullish sentiments in the market. The first target for the upward movement may be the psychological resistance level of $ 800.
It should also be noted that the price consodates above the main EMA200. At the same time, EMA22 crosses EMA50 from the bottom up, which also confirms the strengthening of the uptrend.
The situation on the price chart of the cryptocurrency Ripple is similar to the Ethereum chart.
Here also the price has reached the level of 61.8% then consolidation has begun. If we consider this movement as the first wave, then now a correction in the form of a second wave with a target of $ 0.65 should begin.
In the $ 0.64 area, there is a strong support level. If the price consolidates below it, it will be possible to expect the development of a downtrend.
Confirmation of the beginning of the third wave will be consolidation at $ 0.65. After that, a rebound may occur from the $ 0.64 mark and consolidation above the resistance level of $ 0.86.
On the 4-hour chart, the figure continues the trend "Triangle". The breaking of its upper limit will speak of the continuation of the upward movement. Here, the price may break resistance at $ 1594.38.
On the daily chart, you can see how the price consolidates around the resistance level of $ 1,460.46. If we consider the already completed upward movement as the first wave, then in this situation we expect the second correction wave to the level of $ 983.07. After that, the price will form the third wave. The goal of this five-wave formation will be $ 2201.93.
However, before this price will consolidate above the resistance level $ 1790.57 - $ 1460.46. In this case, the price will also be higher than the peak of the first wave, which will serve as a trigger for the formation of the third wave.
The possible movement in the context of the five-wave formation and goal illustrate on the chart below:
The price consolidates above the resistance level in the form of a descending red line:
For further movement, the next resistance level will be $ 0.38. At this point, the price can form a corrective move and go back to the level of $ 0.32, thereby forming the reversal pattern "Double top".
If the price is fixed below $ 0.32 and below the level of support in the form of a trend line, we can expect strengthening of bearish sentiment and the formation of a downtrend. The first goal of this movement will be the mark of $ 0.27.
On the daily chart, the price consolidates in the range $ 167.60 - $ 144.39. If LTC/USD will break up this range, it will the beginning of the third wave.
Also the price may be corrected to the level of $131.59 in the context of the second wave and from this mark already begin the movement in the third wave for the target of $211.60