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The crypto markets have been in a very narrow area in the last few weeks. It takes a strong catalyst to get out of this consolidation. The breakout or breakdown of the range is likely to trigger a new trend that will stay in place for a few days.
While it is difficult to predict the exact news event that will trigger a response from traders, we can make a calculated guess. The result of the Bitcoin ETF proposals is one of the most watched events that can make a big leap.
On the positive side, the crypto markets haven’t been affected by the decline in the equity markets in the past few days. If this outperformance continues, we expect speculative money to shift into cryptocurrencies, resulting in a strong upward move.
As traders, we should watch the important levels that warrant action. Let’s take a look at the top five artists over the past seven days and see if they’re making purchase setups.
EOS / USD
Aside from Tether, EOS was the best performer in the past seven days, up just under a percent.
Freewallet, a cryptocurrency wallet, announced the release of a new EOS wallet that will allow users to conduct all transactions for free. During the week, the EOS network posted a record 60,000 with its unique daily active account. Will the rise in popularity translate into higher prices?
The EOS / USD pair fell to its previous low of $ 3.8723 on March 18. From there, it rose to a new high of $ 23.0290 on April 29, an increase of around 494 percent in just over a month. However, the breakout of new highs above $ 18.67 proved to be a bull trap as prices have fallen 76 percent since then.
As of mid-August, the virtual currency will trade in a range of $ 6.8299 to $ 4.4930. A breakdown of this range will retest the critical support at $ 3.8723, below which the decline may extend to $ 3 and $ 2.4.
On the upside, a breakout of $ 6.8299 can push prices to $ 9.4456. If this level is exceeded, the price can go up to $ 15.
XRP / USD
The advances in xRapid, the real-time settlement platform and xCurrent payment solutions have kept Ripple in the news for the past few days. The company announced it had sold $ 163.33 million in XRP in the third quarter, up 122 percent over the previous quarter’s revenue of $ 73.53 million. Ripple hired Amir Sarhangi as Vice President of Products, the head of Rich Communications Services (RCS) at Google, to lead RippleNet, a payment network.
How did these events affect the price?
Both moving averages are flattening and the RSI is also in the middle. This points to a sector-specific campaign in the next few weeks.
Although the XRP / USD pair has regularly hit new lows in 2018, the bulls are currently trying to break this sequence. You have tried to hold the recent correction at $ 0.37185.
A rally above the overhead resistance at $ 0.76440 could confirm a bottom and the price may hit $ 0.96 and $ 1.22 respectively.
On the downside, a break in support at $ 0.37185 will cause it to fall to the year-to-date lows of $ 0.25300.
ETC / USD
Ethereum Classic has developed positively in the last few weeks. Donald McIntyre, former Vice President of Morgan Stanley, believes that ETC “has an incredibly unique market position in an extremely valuable niche” in the crypto sector.
The ETC / USD pair has been trading near the strong support at USD 9.5 for about a month and a half. This is a critical level of support as it has not been convincingly broken since the end of May last year. If the bears cut prices below $ 9.5, the next support is much lower at $ 5.2.
The price is currently below both moving averages and the 20-week EMA has declined – this shows that the bears have the upper hand.
On the upside, a breakout above $ 11.883 indicates strength that can propel the virtual currency to $ 14.5 and above to $ 19.
DASH / USD
The recent announcement to integrate Uphold directly into the official Dash mobile wallet, and the partnership between Dash and the cryptocurrency debit card company FuzeX, received great support from merchants. Does the recent price move indicate a bottoming out? Let’s find out.
The trend in the DASH / USD pair is clearly declining. It has consistently hit lower lows, marked as ellipses on the chart. The price has been below the 20-week EMA since the end of February this year.
The bulls had tried to hike prices in late August, but a lack of follow-up purchases caused the digital currency to give up most of its profits. For now, the bulls are trying to defend the year-to-date lows of $ 129.58. A break from the lows will resume the downtrend and bring prices to the next lower support at $ 113.
The virtual currency will show signs of reversal if it breaks out of the overhead resistance at $ 229.24. A breakout of this level can lead prices towards the minimum target of $ 339, with minor resistance at $ 266.
XMR / USD
Although Monero’s upgrade to bulletproofs cut withdrawal fees by about 95 percent in a week, it wasn’t enough to change the larger trend.
The XMR / USD pair has strong support near the $ 81 level that has not been convincingly broken in over a year. Hence, this becomes the level to be seen down. Any interruption based on a weekly close (UTC timeframe) may push prices towards the lower support at USD 58-52.
Currently, the digital currency is trading in a narrow range of $ 128.65 to $ 100.453. Breaking the lower end of this area will retest the $ 81 levels, while breaking the area may cause a rally to $ 150.
We believe that a breakout above $ 150 will trigger a new uptrend that can bring the virtual currency to $ 220 and above to $ 300.
Market data is provided by the HitBTC Exchange. Diagrams for analysis are provided by TradingView.