Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 24
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Market data is provided by the HitBTC exchange.
Cryptocurrency fund manager Brian Kelly expects Bitcoin to rally further in the next few months on the back of its “halvening,” due in 2020. He proposes investors to buy around the current levels and keep 1% to 5% of their portfolio in Bitcoin.
Similarly, CEO of Morgan Creek Capital Mark Yusko believes that Bitcoin investments will outperform the S&P 500 investment fund over the next 10 years. According to him, the low correlation of the cryptocurrency with other asset classes is also a reason why it should be in every investors portfolio.
Other than Bitcoin, the altcoins are also putting forth their use cases in various fields. The Enterprise Ethereum Alliance has outlined various use cases for the real estate sector. Not only crypto and blockchain companies that are looking at various opportunities where the technology can be of help. Elvira Nabiullina, the head of the Bank of Russia is interested in a gold-backed cryptocurrency as she believes it will improve mutual settlements with global jurisdictions.
Facebook is in talks with the major cryptocurrency exchanges on the issue of its rumored cryptocurrency. The social media giant wants to ensure that its cryptocurrency is liquid, tradeable and secure. With fundamental factors supportive, how do the technicals look? Let’s find out.
The trend in Bitcoin (BTC) is up. It held its first support of $7,413.46 on May 23, which is a positive sign. Both the moving averages are trending up and the RSI is in positive territory. This suggests that the bulls have the upper hand.
A breakdown of $7,413.46 and the 20-day EMA will be the first indication that the momentum has weakened. If the 20-day EMA breaks down, the BTC/USD pair can drop to the next support of the 50-day SMA and below it to $5,900. We anticipate this level to hold.
On the upside, if the pair ascends $8,496.53, it can rally to the next resistance of $10,000, which is likely to act as a stiff resistance. We do not find any reliable buy setups at current levels, hence, we are not suggesting a trade in it.
Ethereum (ETH) has been holding above the support of $225.39 for the past few days. This shows strong demand at lower levels. Both the moving averages are trending up and the RSI is in positive territory. This shows that the bulls are in command.
The bulls will now try to push the ETH/USD pair to the overhead resistance of $268.24. Above this, a rally to the $300–$322 resistance zone is possible. The pair will lose momentum if it breaks down of the 20-day EMA and the trend will turn in favor of the bears if the 50-day SMA cracks. Though bullish, we do not find a reliable trade setup, hence, we are not proposing a trade in it.
Ripple (XRP) is attempting to bounce off the 20-day EMA. A strong rebound from the current levels can carry it to the overhead resistance of $0.45. If the bulls succeed in ascending this resistance, the rally can extend to $0.60. Though there are minor resistances at $0.50 and $0.55, we expect them to be crossed.
Currently, both the moving averages are flattening out. This shows a balance between the bulls and the bears. A breakdown of the 20-day EMA will sink the XRP/USD pair to the next support of the 50-day SMA. This is just above the horizontal support of $0.33108. We expect this level to hold. Traders can retain the stop loss on the long positions at $0.2750.
Bitcoin Cash (BCH) bounced off the 20-day EMA on May 23. The bulls are presently attempting to push the price towards the overhead resistance of $450. Both the moving averages are sloping up and the RSI is in the positive zone. This shows that the bulls are at an advantage.
However, we anticipate a stiff resistance between $450 and the resistance line of the ascending channel. The BCH/USD pair will weaken if it turns around from the overhead resistance and dips below the 20-day EMA. The next support on the downside is the 50-day SMA and below it the support line of the channel. We will wait for a new buy setup to form before recommending a trade in it.
EOS has bounced sharply from the 20-day EMA. This is a positive sign as it shows buying on dips. The bulls will now try to scale the overhead resistance of $6.8299. If successful, the pair can rally to $9. Both the moving averages are sloping up and the RSI is in positive territory. This shows that the bulls have an edge. The only red flag is the developing negative divergence on the RSI.
We anticipate a stiff resistance at $6.8299. A turnaround from the resistance is likely to find support at the 20-day EMA. The EOS/USD pair will weaken if it breaks below the moving averages. We might suggest long positions if the pair breaks out and sustains above $6.8299.
Litecoin (LTC) has broken out of the overhead resistance of $91 with force. This is a positive sign. The bulls will now try to scale the overhead resistance of $107. If successful, the cryptocurrency can rally to its target objective of $158.91. Both the moving averages are sloping up and the RSI is in the positive territory. This shows that the bulls are in command.
During the recent pullback, the LTC/USD pair held above the support of $84.3439. This is a bullish as it forms a new base for the cryptocurrency. A breakdown of this support will result in a fall to $74.6054. The traders can trail the stops on the long positions to $80. We do not like the negative divergence on the RSI, hence, let us reduce our risk.
Binance Coin (BNB) continues to be the strongest major cryptocurrency as it is consistently making new lifetime highs. Unlike previous occasions, the digital currency has not corrected to the 20-day EMA after reaching the resistance line. This suggests that the bulls are holding on to their positions as they expect a further rally.
The BNB/USD pair is attempting to climb above the resistance line once again. If successful, it can move up to $40.2919564. With both the moving averages sloping up and the RSI in the overbought zone, the bulls have the upper hand. Our bullish view will be invalidated if the pair reverses direction from the resistance line and plummets below the moving averages.
Stellar (XLM) is attempting to hold the moving averages, which are flattening out. The RSI has also dipped to just above 50. This suggests a balance between the bulls and the bears.
A drop below the moving averages can sink the XLM/USD pair to $0.088542. Thereafter, the pair might remain stuck in the range of $0.088542 to $0.14861760 for the next few weeks.
Conversely, if the bulls hold the moving averages and push the price above $0.14861760, the pair might pick up momentum and rally to $0.22466773. We will wait for the price to close (UTC time frame) above $0.14861760 before proposing a trade in it.
The bulls are struggling to hold Cardano (ADA) above the moving averages for the past few days. Though the bulls bought the dip below the 20-day EMA on May 23, they have not been able to propel the cryptocurrency higher. This shows some buying on dips but a lack of demand at higher levels.
A close (UTC time frame) below $0.073 can result in a fall to the next support of $0.057898. Both the moving averages are flattening out and the RSI is also close to the center. This points to a likely consolidation in the next few days.
But if the ADA/USD pair holds the current levels and scales above $0.094256, it will complete a reversal pattern that has a target objective of $0.161275. Therefore, we maintain the trade recommendation given in an earlier analysis.
Tron (TRX) has held the support at the moving averages and is attempting to rise back above the overhead resistance of $0.02815521. If the price sustains above this level, the digital currency is likely to pick up momentum. However, the digital currency has seen a number of failed breakouts in the past few months, hence, we will wait for the price to stay above the range for a few days before confirming the start of a new uptrend. The target level to watch on the upside is $0.040 and above it $0.050.
On the other hand, if the TRX/USD pair reverses direction from the overhead resistance and sinks below $0.0250, it can dip to the next support at $0.02094452. Both the moving averages are flattish and the RSI is just above the midpoint. This points to a range bound action for a few days. For now, the traders can retain the stop loss on the long positions at $0.0209.