Cryptocurrency Market Analisys: A New Rally Or Dead Cat Jump?
The Streamr developers have launched a promising solution of the Ethereum scalability called Monoplasma. The technology can significantly increase the speed of the platform. Ripple is in danger - the market is discussing the likelihood of JPMorgan launching its own cryptocurrency, which may replace XRP in the fast payment system.
Over the past week, the cryptocurrency market has grown significantly, but this growth can be considered as a technical correction.
As we can see BTC/USD has formed a strong momentum, which allowed us to reach the resistance line of the current channel. The growth trend reached Fib 61.8% relative to the previous wave of decline. In the short term, a rollback to local support of $ 3,789.00 is possible. After the correction, the next wave of growth will be aimed at reaching the level of 76.0% ($ 4020), and later will get a peak of $ 4234.50.
If you look at the Bitcoin dynamics, you could see that the Stochastic indicator has formed a “black cross” in the overbought zone. This may indicate the beginning of the corrective phase development. The pullback levels are $ 3,812.80 and $ 3,763.60, corresponding to the levels of Fib 38.2% and Fib 50.0%.
The market has managed to generate another strong growth momentum, breaking the resistance line of the previous growth channel. The observed growth wave reached the resistance line not only of the short-term, but also of the medium-term channel. This may indicate that after retesting the resistance line at the $ 3.91 mark, a corrective decline may follow to local support of $ 3.19.
In addition, it is worth highlighting the achievement of the level of 50.0% of the medium-term Fibonacci correction relative to the previous medium-term impulse of decline. After completion of the rollback, a new growth impulse may appear, the goal of which will be the medium-term level of 61.8% ($ 4.20). MACD continues to move up, which confirms the potential for further growth.
On the hourly chart, EOS forms a flag-like correction corridor. At the same time, the Stochastic indicator has been in the overbought zone for a long time, which indicates the stability of the upward trend. If Stochastic forms a “golden cross”, and quotes, having overcome the resistance of $ 3.91, will reach the level of $ 4.20, then after that you can expect not just a decline, but the start of a new medium-term decline wave.
Ether, like a number of other cryptocurrencies, came under the hot hand of bullish sentiment and continued the development of an uptrend. New growth momentum tested and broke through the growth channel resistance line. At the moment, quotes are testing the overcoming level from above. Completion of the test may allow the market to generate another impetus to the current peak of $ 160.44. Throwing the option of reducing to the frame of the previous channel to the support line and the level of $ 129.95 is also not worth it.
On the hourly timeframe, Stochastic has formed a “black cross” and seeks down from the overbought zone, it can serve as an indirect signal of the beginning of the correction phase. The primary wave of decline reached the level of 23.6% and can continue to move to the levels of 38.2% ($ 136.30) and 50.0% ($ 132.30) on the Fibonacci scale.
After completing a corrective decline, Litecoin continues to develop an upward trend, but at a more modest pace than before. Quotes rewrote the last high and test the resistance line of the medium-term growth channel. In the short term, we can expect a decline and a support test of $ 44.70. The next growth impulse will be directed to the resistance line - to the level of $ 56.
At the same time, it is worth paying attention to the formation of a divergence on MACD. Divergence can serve as a warning of the imminent end of the growth trend.
On the hourly chart, there is an attempt to rise to the local resistance level of 51.90. The dynamics of the Stochastic indicator lines and the “golden cross” in the overbought zone indicate a steady upward trend. The breakdown of $ 44.70 will release quotes to support $ 33.25.
The long-term technical picture of XRP, judging by the dynamics of the four-hour chart, begins a new stage in its life. The last growth impulse has broken the long-term resistance line, tested it for strength and is preparing for the next upward movement. Note that only a breakdown of the current resistance of $ 0.3455 will be a good signal for growth to a projection resistance of $ 0.3677. Support is still at $ 0.2940.