On average, most coins including the dominant Bitcoin and Ethereum (ETH) are swinging between bullish and bearish gaining three percent as they end the week on a high. Regardless, traders need a lot of convincing before loading up longs and perhaps that might happen this week more so if there is a follow through of last week’s rejection of lower lows. In any case, our trade plan anchors mostly on how buyers react at immediate resistance and previous sell trigger lines.
Let’s have a look at these charts:
Ethereum (ETH) Technical Analysis
Contrary to our expectation-after that three-bar bull reversal pattern, gains are capped and trading below $320, Aug 17 highs. Though there are chances of upsides, fading a clear bear trend especially when we consider a top down approach is counter intuitive.
Nevertheless, our suggestion for low size long position specifically for risk-off traders is advised from Aug 13 high volume pin bar rejecting lower lows.
As visible from the chart, buyers are building up their gains from that candlestick and though gains are limited, buying at spot prices with stops at $270 and first targets at $370 meshes well with the current positive sentiment and bottoms expectations.
Bitcoin Cash (BCH) Technical Analysis
Week over week, BCH is still down three percent but still yesterday ended up bullish with Roger Ver’s coin adding two percent ending on a high in the process.
Even though this is position and hints of slowing bear momentum and a possible bottoming market, bulls need to breach and close above $600, our immediate resistance line and former sell trigger line.
In any case, our previous Bitcoin Cash trade position is still valid as long as prices are trading below $600. With this, it means our sell recommendation on any retests and rejection of highs above $600– more so if a high volume bearish engulfing pattern prints around our resistance line damping buy momentum–is valid.
On the reverse side, any convincing close above $600 means a confirmation of end of last week’s morning star pattern and the beginning of a potential reversal that might drive prices towards $850, the upper limit of our last consolidation.
XRP Technical Analysis
The topic of regulation is always a contentious subject in the crypto realm. It is even sticky in the ICO world and as an innovative fund-raising model, regulators are always finding ways of weeding out scammers taking advantage of investors who more often than not compelled by the hype around the project and fail to do their own research. It’s along these lines that Warren Davidson said Ripple is one of the 32 crypto leaders invited for a discussion at the Capitol Hill on the best ways to regulate this fund-raising model. The meeting is scheduled for Sep 25, 2018.
Though XRP keep swinging from positivity to bearish, our short-term longs were activated after Aug 17 bull candlestick. While many expected a follow though confirming that bullish engulfing candlestick, it appears as if upside momentum is waning as buyers are yet to clear that trend reversing candlestick at 40 cents.
As spelled out in our last XRP trade plan, risk off traders can initiate long trades at spot rates with stops at 30 cents and first targets anywhere between 45 cents and 55 cents in the upper side.
Any high volume thrust above 55 cents nullify our short projections and provides the next impetus for the next wave of buyers aiming at 70 cents.
EOS Technical Analysis
A four percent gain in the last 24 hours and prices are pretty much stuck within Aug 17 high low. In any case, this could hint of bears who are overwhelmingly in charge especially when we take a top down approach.
From the daily chart, EOS buyers need to cement their long positions by thrusting and closing above $7, our immediate resistance level. In the meantime, aggressive traders can begin loading up small position longs at current spot prices with stops at Aug 17 lows at $4 with first targets at $7.
Before then and as per our previous reiteration, conservatives shall take a neutral approach with a heavy bearish leaning.
Monero (XMR) Technical Analysis
Based on candlestick formations in the daily chart, potential supports might be found anywhere between that $120—right around previous support trend line–and the upper limit of the current channel at $150.
As such, the best approach to trade this pair considering the current realignment of candlestick formation is to pause trading and take a wait and see approach as to whether bulls will drive prices above Aug 18 bear pin bar highs or if sellers might resume their drive and clip end of last week’s gain by closing below $85.
Should the latter be the case, then we shall initiate sells in every high once bears close below our previous bear target and main support line at $70. Ideal bear targets would be at $40.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.