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Market data is provided by the HitBTC exchange.
While various cryptocurrencies are vying to attract investors attention, stablecoins have silently gained popularity. Currently, most stablecoins are pegged to the U.S. dollar. United Kingdom-based cryptocurrency payment processor Wirex has announced plans to launch stablecoins pegged to various fiat currencies. This, according to them, will allow “for swift, international remittance without the need for local liquidity providers.”
Many projects are focused on ironing out issues in cross-border payments using blockchain technology. A prominent name among them is JPMorgan Chase (JPM), which has been able to attract more than 220 banks across the globe to its Interbank Information Network (IIN). JPM is working towards a quick resolution of the problems associated with international payments that get stuck.
Around 20 of the biggest traders in the crypto market met in January to discuss the steps needed to make the asset class more attractive to institutional investors. The next leg of growth will need the involvement of institutional players, but some institutions are still skeptical due to the stigma attached to the asset class. However, if cryptocurrencies show a sustained recovery, many will be forced to take the plunge.
BTC/USD
Bitcoin (BTC) is facing selling on a rebound from the 20-day EMA. This suggests profit booking by the bulls and probable short initiation by the bears. If the price slides below the 20-day EMA, it will indicate weakness and a fall to $4,914.11 will be on the cards. This is a major support. If this breaks down, the next stop is the 50-day SMA.
If the bulls defend the support zone between the 20-day EMA and $4,914.11, the BTC/USD pair will again try to resume its up move. The levels to watch on the upside are $5,600 and above it $5,900. We expect a strong resistance in this overhead zone. Hence, we recommended closing partial positions above $5,600 in our previous analysis.
Until then, the stop loss on the remaining long positions can be kept at $4,800. The pair is giving mixed signals. While the uptrending moving averages and the RSI in the positive territory are bullish, the developing negative divergence on the RSI is a red flag. The next few days are critical for the leading digital currency.
ETH/USD
Ethereum (ETH) plunged below the 50-day SMA on April 25 and hit our stop loss on the remaining long positions at $150. Nonetheless, we like the way the bulls are attempting to bounce off the 50-day SMA. If they succeed in propelling the price back above $167.32, it will indicate that the current fall was a bear trap.
But if the ETH/USD pair fails to scale above $167.32, the bears will again try to break down of the 50-day SMA. If successful, the pair can decline to $144.78 and below it a drop to the trendline of the ascending triangle pattern is probable.
The 20-day EMA has started to turn down and the RSI has dipped below 50. This suggests that the bears are staging a comeback. We will wait for the price to sustain above $167.32 before turning positive once again.
XRP/USD
Ripple (XRP) has plummeted back into the channel and has dropped to the critical support of $0.27795. If this support breaks down, the next stop is the retest of the yearly low at $0.24508.
The moving averages have completed a bearish crossover and the RSI is close to the oversold levels. Though these are negative signals, we will disregard them because the XRP/USD pair is range bound.
The best way to trade in a range is to buy close to the bottom and sell at the resistance, but we suggest traders avoid buying now because the pair has been a huge underperformer in the past few days. This suggests a lack of buying interest.
Our bearish bias will prove to be incorrect if the digital currency bounces off sharply from the current levels and rises above the channel once again. We do not find any reliable buy setups at the current levels.
BCH/USD
Bitcoin Cash (BCH) is trying to hold the critical support zone between $255 and $241.97. If this zone breaks down a fall to the 50-day SMA is probable. Below this level, the digital currency can complete a 100% retracement of the recent rally.
If the bulls defend the support zone and secure a strong bounce from it, the BCH/USD pair might remain range bound for a few days. The pair is at a critical level. As the pair has a history of vertical rallies and waterfall declines, we will wait for a buy setup to form before suggesting a long position in it.
LTC/USD
Litecoin (LTC) has been taking support at the 50-day SMA for the past two days. Both the moving averages have flattened out and the RSI is just below the midpoint. This points to a consolidation in the near term.
Currently, the bears are facing selling at the 20-day EMA and the resistance line of the descending channel. If the LTC/USD pair breaks out of the channel, it can move up to $84.3439 and above it to $91.
On the contrary, if the bears sink the pair below the 50-day SMA, it can drop to $62.450. A breakdown of this support will turn the tide in favor of the bears. We will wait for the digital currency to form a bullish setup before suggesting a long position.
EOS/USD
EOS is trying to take support at the 50-day SMA. The uptrend line of the rising wedge and the horizontal support of $4.4930 are also just below this level. Hence, we expect a strong defense by the bulls.
However, the 20-day EMA is sloping down and the RSI is in the negative territory, which shows that the bears are back in action. A breakdown of the wedge will be bearish and it has a pattern target of $2.80.
On the upside, a breakout of the 20-day EMA and the downtrend line will indicate strength. The targets on the upside are $5.6163 and above it $6.0726. We shall wait for the EOS/USD pair to sustain above the downtrend line before turning positive.
BNB/USD
Binance Coin (BNB) is in a strong uptrend. It has again bounced off the 20-day EMA, which shows that the buyers are keen to support it on any dip. The bulls will again try to make a new high. On the previous three occasions, the price turned down from the resistance line. Hence, this is a major resistance to watch out for. If the cryptocurrency breaks out of the wedge, it will invalidate a bearish pattern, which is a bullish sign.
But if the BNB/USD pair fails to rise to new highs or sustain it, the bears will again try to pull it back to the 20-day EMA. The pair remains strong as long as it stays above the uptrend line of the wedge. A breakdown of the wedge will be the first warning that a deeper correction is likely.
For now, both the moving averages are trending up and the RSI is also in the positive territory. This suggests that the path of least resistance is to the upside. We will wait for the price to sustain new highs before suggesting a long position.
XLM/USD
Stellar (XLM) broke below the uptrend line of the rising wedge pattern on April 25. This is a negative sign but the bulls are making an attempt to push the price back into the wedge. On the upside, they will face a stiff resistance at the moving averages and above it at $0.12039489.
If the XLM/USD pair fails to sustain above the uptrend line, it might turn down once again and break below the wedge. This will give it an immediate target of $0.080. The moving averages are on the verge of completing a bearish crossover, which shows that the bears are in command. We suggest traders wait for the pair to show some strength before initiating any long positions.
ADA/USD
Cardano (ADA) continues to trade inside the descending channel. It has dipped to the 50-day SMA, which is a strong support. Though the bulls have managed to hold on to this level, they have not been able to secure a bounce. This shows a lack of urgency to buy at these levels.
The 20-day EMA has started to turn down and the RSI has dropped into the negative zone. If the support zone between the 50-day SMA and $0.063230 breaks down, it will indicate that the bears have the upper hand.
A breakout of the descending channel will be the first positive that can carry the ADA/USD pair to $0.082952. We will wait for the price to scale $0.094256 to turn positive. Currently, we are neutral on the pair.
TRX/USD
Tron (TRX) is trying to bounce off the support at $0.02094452. It is likely to face some resistance at the moving averages, above which it can move up to $0.02815521. The bulls have managed to push the price above $0.02815521 thrice in this year but they have not been able to sustain the breakout. This shows selling at higher levels. The digital currency might pick up momentum above $0.03278079.
On the other hand, if the TRX/USD pair fails to break out of the moving averages, the bears might again try to break down below $0.02094452. The next support on the downside is $0.01830, which is likely to hold. We will wait for the price to break out and sustain above the range before suggesting a trade in it.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.