Bitcoin, Ethereum, Ripple, Litecoin, EOS, Bitcoin Cash, Binance Coin, Stellar, Cardano, Tron: Price Analysis, March 27
Sentiment toward blockchain technology remains skeptical, as major influencers say that a solid use case is yet to appear.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
Various sectors are opening up to the vast potential of blockchain technology. This will result in a 44.5 percent compound annual growth rate in the blockchain space between now and 2025, according to a recent report. Spending in the space will purportedly increase from $3.12 billion to $41 billion in the said period.
Still, there are a number of executives who are wary of this new technology. Aanchal Anand, a Land Administration Specialist in the World bank’s Global Land and Geospatial Unit, has warned against the so-called “blockchain hype.”
Similarly, Catherine Bessant, chief technology officer at Bank of America (BoA) said that many companies approach her with blockchain projects, but she is yet to see a solid use case. Hence, she remains negative on the technology in her private capacity.
Weiss Ratings founder, Martin D. Weiss, said that even during the bear market a critical segment of the crypto space is growing sharply. Therefore, “for those willing to take the risk, the best time to invest could be very near.” Let’s see what our charts project.
Bitcoin (BTC) dipped below the uptrend line on March 25, but the bulls bought the dips, which is a positive sign. The digital currency is currently attempting to scale above $4,065 and rally towards the overhead resistance of $4,255. A close (UTC time frame) above $4,255 will complete a bullish double bottom pattern, that has a target objective of $5,273.91. We also expect short covering above $4,255 to provide momentum, as a number of bears are likely to throw in the towel. The upsloping moving averages and RSI in positive territory suggest that the path of least resistance is to the upside.
Our bullish view will be negated if the BTC/USD pair reverses direction from one of the above resistances and plummets below the uptrend line. On the downside, the first support to watch is the zone between uptrend line and 50-day SMA. If this breaks down, a fall to the critical support zone of $3,355 to $3,236.09 is probable. Therefore, traders can hold long positions with a stop loss of $3,500. We shall soon raise it to $3,800.
Ethereum (ETH) corrected to the 50-day SMA on March 25 where buying emerged. The price has rebounded back above the 20-day EMA and is currently attempting to rise above the uptrend line. If successful, a move to $144.78 is probable.
The ETH/USD pair will pick up momentum above $144.78 and reach close to $167.32. On a breakout of this level, the index will complete an ascending triangle pattern, which has a target of $251.64.
Contrary to our assumption, if the pair turns down from the current levels and breaks the 50-day SMA, it can correct to $125.88. A break below this will weaken the digital currency and drag it to $116.30. Hence, the stops on the remaining long positions can be kept at $125.
Ripple (XRP) plunged on March 25 and momentarily broke below the $0.27795 support, but it quickly recovered to close (UTC time frame) flat for the day. As we had suggested a stop just below $0.27795, we shall consider that the long positions were closed. If not, traders can keep the stop loss at $0.270.
The bulls are currently attempting to push the XRP/USD pair back above the moving averages. If successful, the pair is likely to move up to $0.33108. This is a critical resistance as it has not been sustained since Jan. 11 of this year. A breakout and close (UTC time frame) will indicate strength that can carry the price to the resistance line of the descending channel.
If the bulls can break out of the channel, a move to $0.40 is probable. The digital currency will pick up momentum above $0.40 and can reach $0.60. Therefore, we will again recommend buying on a close (UTC time frame) above $0.33108.
Litecoin (LTC) dipped to the 20-day EMA where it found support. It is currently attempting to bounce off the support. If successful, it can move up to the resistance line and above it, the rally can stretch to $69.2790. Both the moving averages are sloping up, which shows that the buyers are at an advantage.
Contrary to our expectation, if the LTC/USD pair turns down from the current levels and plunges below the uptrend line of the developing wedge, it can drop to the 50-day SMA and below it to $47.2460. Therefore, traders can keep the stop loss on the remaining long positions at $55. We continue to watch the negative divergence on the RSI closely as it is a red flag.
After trading close to the 20-day EMA for the past few days, EOS has made a decisive move to the upside. Considering the strength of the move, it can easily reach $4.4930 and even rise above it. If the price sustains above $4.4930, the next target to watch on the upside is $5.8370.
However, if the EOS/USD pair fails to breakout of $4.4930, it can remain range bound for a few days. The pair will turn negative on a breakdown and close below the 50-day SMA.
The 20-day EMA has started to turn up and the 50-day SMA is sloping up. This a bullish sign and it increases the probability of an upward breakout of the overhead resistance. Therefore, traders can keep the stop loss on the remaining long positions at $3.1. We shall suggest trailing the stops higher in a couple of days.
Bitcoin Cash (BCH) took support on the 20-day EMA on March 26 and is currently attempting to sustain above the overhead resistance of $163.89. We find a rounding bottom formation on the digital currency, which will complete on a close (UTC time frame) above $163.89. The target objective of this bottoming formation is $222.78.
If the bulls fail to sustain above $163.89, the BCH/USD pair can again fall to the 20-day EMA. If this support breaks, a fall to the 50-day SMA is probable. Traders can protect their long positions with the stops at $140. The upsloping moving averages and the RSI close to the overbought zone suggests that the bulls have the upper hand. With a history of vertical rallies, the pair can go to the upside.
Binance Coin (BNB) triggered our sell above $17. Hopefully, traders would have booked partial profits again on the open long positions. Now, only 25 percent of the original position remains. We did not recommend booking profits on the complete position because a breakout of $18 can result in a retest of the highs. Both the moving averages are trending up and the RSI is close to the overbought zone. This suggests that the bulls are still in command.
Our bullish view will be invalidated if the BNB/USD pair breaks below the uptrend line. Such a move can drag the pair to the 50-day SMA, below which the trend will turn negative. Therefore, we suggest traders keep a stop loss of $15 on the long position.
Stellar (XLM) dipped below the 20-day EMA on March 25, but quickly found buying support at lower levels. It is currently attempting to rise above the 20-day EMA once again.
If the price ascends $0.1130, it can move up to the resistance line at $0.13250273. Above this level, the next target to watch on the upside is $0.14861760.
But if the XLM/USD pair fails to sustain above the 20-day EMA, it can again correct to the 50-day SMA. The pair will turn negative if it breaks down of the uptrend line. Therefore, traders can keep the stop loss on the long positions at $0.08.
As anticipated, the correction in Cardano (ADA) lasted only for two days. This is an indication of strength. Having hit our first target objective of $0.066121, the digital currency can now move up to its next target of $0.080.
Contrary to our opinion, if the price reverses direction from the current levels, it can drop to the 20-day EMA, below which it can fall to $0.051468. If this support breaks, the pair might turn negative.
Though Tron (TRX) has stopped falling, it is struggling to breakout of the 20-day EMA. This shows a lack of buying interest at current levels.
Both the moving averages are flattening out and the RSI is at the midpoint. This points to a consolidation in the near term.
On the upside, if the TRX/USD pair breaks out of the moving averages and $0.025, it can move up to $0.02815521. This level has been a major hurdle since August of last year. Hence, we shall wait for the price to sustain above it before suggesting any trade in it. If the pair turns down from the current levels and plummets below $0.02094452, it can drop to $0.0183.