BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, TRX: Price Analysis 07/06
There are signs of buying at the lows in most major cryptocurrencies. Will they resume their uptrend?
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Market data is provided by the HitBTC exchange.
The white paper for Facebook’s stablecoin might be released as early as June 18, according to multiple sources. This has been an eagerly awaited project as the social media giant along with its sister companies WhatsApp and Instagram can reach millions of customers.
In a recent interview, Laura McCracken, Facebook’s Head of Financial Services and Payment Partnerships for Northern Europe, confirmed that “the value of Facebook Coin will be secured with a basket of fiat currencies.” Over 100 people are working on the project with about 40 more openings yet to be filled.
Igor Sechin, head of Russian oil company Rosneft has said that Facebook’s stablecoin might also be used to pay for the purchase of crude oil in the future. While Venezuela had previously attempted to link crude oil and cryptocurrency, its project failed due to various reasons. But if large producers like Russia start accepting cryptocurrency payments for their oil, it will give a big boost to the sector. With every passing day, the fundamentals of the sector are improving.
Will prices respond positively to these developments? Let us find out.
Bitcoin (BTC) has been trading between the 20-day EMA and the horizontal support of $7,413.46 for the past two days. Currently, the 20-day EMA is flat and the RSI is close to 50. This points to a consolidation in the near term.
The chart is also showing the possibility of a head and shoulders pattern formation. Currently, the BTC/USD pair might be forming the right shoulder. The pattern will complete on a breakdown of the neckline. This breakdown has a target objective of $5,371.12. However, a head and shoulders pattern with an upward sloping neckline is less reliable. Hence, we will not become overly negative but will remain cautious.
This pattern will be invalidated if the pair breaks out of the head at $9,053.12. If the bulls sustain the price above the 20-day EMA, a retest of the highs at $9,053.12 is likely. The failure of a negative pattern is a bullish sign. Hence, if the bulls sustain the price above $9,053.12, a quick rally to $10,000 is probable.
Ethereum (ETH) is currently range bound between $225.39 on the downside and $280 on the upside. The 20-day EMA is flat and the RSI is just above the midpoint. This suggests that the cryptocurrency might consolidate for the next few days.
A breakdown of $225.39 and the 50-day SMA can sink the ETH/USD pair to $167.20. On the other hand, if the bulls propel the pair above the resistance of the range at $280, it can move up to $322.06, which is likely to act as a stiff resistance.
The best way to trade a range is to buy closer to the support and sell near the resistance. Therefore, we will wait for the pair to bounce from $225.39 before suggesting fresh long positions.
Ripple (XRP) has formed a symmetrical triangle. A breakout of the overhead resistance at $0.45 and the resistance line of the triangle has a target objective of $0.57259. If this level is crossed, the rally can extend to $0.62.
Conversely, if the bears sink the XRP/USD pair below the support line of the triangle, it gives a pattern target of $0.26741. However, the pair has strong support at $0.35660 and below it at $0.27795.
The 20-day EMA is gradually creeping up and the RSI is above 50, which shows that the bulls have a slight advantage. Therefore, traders can retain the stop loss on the remaining long position at $0.35. We will trail the stops higher within the next few days.
Litecoin (LTC) has bounced smartly from the 20-day EMA. This is a positive sign as it confirms that bulls are defending the first line of support and are not waiting for lower levels to buy.
The bulls will now try to push the LTC/USD pair above the overhead resistance zon