Price Analysis: Bitcoin, Ripple, Ethereum, Litecoin, Stellar, Cardano
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Volatility in Bitcoin price over the last couple of months has significantly dented its popularity when we go by the Google search data and even leading coins like Stellar, Ethereum and LItecoin have also seen a drop in prices due to this trend. In early March Google trends point to Bitcoin searches reaching its lowest ebb since October, 2017. This is understandable since Bitcoin had plunged by as much as 68% from its lifetime peak. This may not be a negative factor for the top cryptocurrency though it does indicate the end of a euphoric phase and investors have turned to greener pastures. We can also safely assume that all those who came moonlighting have retreated, leaving the markets with only serious contenders. However, if the markets turn hot again, it is likely that speculators will be quick to jump back into the wagon.
On that note, let us examine price movement of some of the top coins including Stellar, Ethereum and Litecoin.
On March 10, Bitcoin price dipped below the $9,500 mark, but bears could not take any advantage and the next day the prices recovered quickly indicating strong support from buyers at the lower levels. Presently the Bitcoin/USD pair is moving in a critical range. The $10,000-$10,300 range experiences resistance from moving averages as well as the descending channel’s resistance line. Once the price move out of this range and stays above $10,300 for at least 4 hours, one can purchase this with stop loss set t $8,700. In terms of target, the first objective is the rally to $12,150 from where the coin retracted on three occasions in the past. A break out above $12,150 will potentially take the coin into new horizons.
The price of $654.02 has been seen to be a strong support point for Ethereum. In the last 3 days, price has been trading in a tight range between $745 and $654. If the bulls succeed in breaking out from this range the ETH/USD pair price may rally to $800 levels where it can face resistance from 20 day EMA and the descending channel’s resistance line. Once the two resistance levels are crossed, the subsequent resistance will come up at $900 from the 50 day SMA. For swing traders, the risk/reward ratio offered by ETH is not healthy though intraday traders may buy after the price breaks out of its resistance levels for quick profits. Conversely, if the range breaks down, the fall could likely take the crypto to $565 levels.
In the last 4 days, Litecoin price has also been moving in a tight range. Since the price now stands at the apex of a descending triangle, a bearish setup is no more valid. If the bulls manage to break the downtrend line and 20 day EMA, one should expect the LTC/USD paid to start climbing towards the$250 levels. Therefore, the coin merits a buy recommendation above $200 with stop loss set at $165. But, if the price is moving down from its current level and goes below $180 a drop to $160 should be expected.
We have been seeing a sluggish price action in the case of Stellar. The bears could not gain any advantage from the price breaking down below $0.32. Though a drop to the $0.22 level was expected, the bulls defended $0.25 levels successfully. While the bulls have been active at the low levels, they did not succeed in pushing the crypto price above $0.32. A long trade on XLM/USD pair is suggested if the price sustains above $0.32 for a few days.
Bitcoin Cash managed to hold the $1,000 level for the last 3 days. On 11 March, the price escalated to $1,150 overhead resistance, though the bulls could not build on the uptick. Presently, the BCH/USD pair faces resistance at its downtrend line. The 20 day EMA sits right above. The $1,150-$1,200 range will see the bears defending that. But once the price crosses this range, we may see the coin moving to $1,355 which is another major resistance. Conversely, if the price moves below $1,000, the crypto could be sliding to $854.
For the last 3 days the price of XRP/USD pair has been ruling above $0.73. This pair is expected to be range bound for the next few days. A rally to $1.22 is possible if there is an improvement in the overall sentiment in the crypto industry. Developments with regard to the legal battle against R3 may also weigh on the price of this coin. Below $0.85 traders can buy with the stop loss set at $0.72. However, this trade is risky and therefore it is recommended that traders reduce the position size to 50% of what they normally take. Ripple has the potential to fall to $0.695 and possibly further to $0.5627, if the bears persist.
Cardano is continuing to trade is a limited range in accordance with earlier forecasts. Trade set-up is not seen since the bears and bulls are on equilibrium. If one of them can be dominant in the next couple of days with a move in the larger range, we should wait for that before taking a position. At the price of $0.0000246, the price may face resistance against any uptick. Above that level, the next resistance is at the downtrend line as well as its 20 day EMA which are nearly identical at 0.0000275. If the ADA/BTC pair moves above this price, it could be the start of a new trend for the crypto. Till then, it is safer to be on the sidelines.
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