xrp crypto stock

Cryptos hit the breaks while investors make up their mind

Cryptos hit the breaks while investors make up their mind
Written by publisher team

  • Bitcoin saw a bullish candle on Wednesday but the bears are still defending the upper side of the pennant.
  • Ethereum is out of its flag, but a bull trap appears to be forming where buyers can’t get past the intermediate resistance.
  • XRP is keeping the flag respectful and seems clueless as to where to go next.

Bitcoin price appears to be respecting the limits of its science as global markets take a breather after Wednesday’s positive rally. As for Ethereum, it appears that more worrying price action is unfolding as the bulls twice failed to break above $4,465, in the process forming an upside trap. In the meantime, XRP appears to be more promising as the uptrend of the pennant has been tested twice and seems ripe for a breakout.

Bitcoin price sees investors waiting for more data to assess risk situation

Bitcoin (BTC) price rose yesterday after positive news about the Omicron virus and the protective factor of the current vaccinations. Investors eagerly jumped into riskier assets such as stocks and cryptocurrencies in the news. The move pushed the bitcoin price above $50,000 on a strong bullish rally. But the good news seems short-lived as most of the markets take a breather this morning and give up their previous earnings.

BTC price is now down as bears pushed the price below $50,000 during European trading hours. This creates some tension among the bulls as they risk being stopped out if the bears are able to push the price to the downside, in a breakout move from the pennant. $48,760 in particular is critical to the bulls as many stops have been placed just below there.

BTC/USD daily chart

Expect some side action while keeping $48,760. Should a favorable tailwind or two emerge, a break to the upside would push BTC price back above $50,000 and trigger a bullish breakout from the pennant, targeting $53,350. If investors start closing their positions, however, expect a downward spiral to begin with a break below $48,760 and a push towards $47,065. This level should hold as support with the 200-day simple moving average providing an additional support factor.

Ethereum price needs bulls to step up their game as bull trap looms

Ethereum (ETH) price has seen a brand hack in favor of the bulls, but that’s where the positive news ends – at least for now. The bulls quickly hit the solid ceiling at $4,465 and once again failed to reclaim this level, as the price action was dragged down again. Much of the bullish reaction is being held as today’s earnings, eroding the rally from yesterday. At the moment, the 55-day simple moving average (SMA) is holding steady at $4,325, but since there is no real positive catalyst presenting itself, it seems that one negative factor could easily see a breakout below the simple moving average. for 55 days.

Then the price of ETH falls back to the pennant and leaves investors at a loss as to what to do next, which will keep ETH trading in the $4,060-$4,465 range. The bulls have already been rejected twice to the upside, which could lead to more bearish activity and a possible break below $4,060, although the $4000 monthly pivot should provide additional support and keep further downside muted.

ETH/USD daily chart

ETH/USD daily chart

We expect some sideways price action at the moment as investors assess the new situation and look for further guidance on whether risk-taking or risk-off will prevail over the last few weeks of 2021. If ETH price breaks above $4,465, expect an additional rally that investors take advantage of. They went long and quickly pushed the price higher to $4,646. On the downside, a break below the pivot at $4,000 would see an accelerated move back towards $3,687.

XRP price is still stuck in the pennant despite the bullish reaction

Ripple (XRP) price saw the bulls bounce from the lower end of the pennant and then hit a ceiling at the higher end of the pattern. Bulls are looking to hold their positions as today’s high has already been breached with the pennant breaking out to the upper side. This opens the door for more investors to jump in, encouraged by the determination and persuasion of buyers.

A break above $0.88 could see a quick push towards $1.05, breaching the 200-day simple moving average at $0.95 all the way. This element might trigger some profit taking, but in general, the bulls should be able to take it and reach $1.05. The speed and speed of the rise will depend on the presence of tail winds that provide sufficient conviction to remain in the trade.

XRP/USD daily chart
XRP/USD daily chart

If sentiment reverses and takes a turn to the downside, expect a breakout of the lower end of the pennant and a move below $0.84. Once there, the selloff will accelerate and see the price of XRP quickly push towards $0.62. This area will provide an excellent entry for the fading out with the S2 monthly support level at $0.58, giving a $0.04 window to entries at a profitable discount.


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