Cryptocurrencies

Major cryptos post technical recovery gains

  • Bitcoin rebounds to $7300 area, stays in red on weekly chart.
  • Ethereum registers modest gains for third straight day on Saturday.
  • XRP adds more than 1.5%, pulls away from 2-year lows set earlier in December.

Major cryptocurrencies are posting technical recovery gains as the choppy market action ahead of the new year allows the market to shake off the negative sentiment. Nevertheless, this week’s market activity doesn’t yet point to the beginning of a deep correction following the sharp drop witnessed earlier in the month.

Top-three coins price overview

After sliding toward the $7000 handle on Friday, Bitcoin (BTC/USD) reversed its direction and closed the day in the positive territory before edging higher on Saturday. As of writing, the pair was up 0.8% on a daily basis at $7305. Despite today’s rebound, technical indicators suggest that the pair is likely to consolidate in the near-term with the Relative Strength Index (RSI) on the daily chart moving sideways near the 50 mark. On the weekly chart, the pair is down 2.7%. Supports for Bitcoin could be seen at $7180 (20-day moving average), $7000 (psychological level) and $6430 (December 18 low). On the upside, the initial resistance aligns at $7400 (Fibonacci %23.6 retracement of the October 26-December 18 drop) ahead of $7600 (static level) and $8000 (Fibonacci 38.2% retracement October 26-December 18 drop). 

Ethereum (ETH/USD) posted small gains on Thursday and Friday and stretched higher on Saturday. As of writing, the pair was up 0.9% on the day at $127.30 and was adding 2% since Thursday. On the upside, $132 (December 26 high/20-day moving average) could be the first resistance before  $136 (static level) and $142 (December 16 high). Supports, on the other hand, are located at $122 (December 27 low/March 4 low), $116 (December 18 low/February 11 low) and $110 (January 22 low).

After touching its lowest level since November of 2017 at $0.1760 on December 18th, Ripple (XRP/USD) staged a rebound but struggled to break above the $0.2000 mark. The pair retreated to the lower half of its 2-week-old horizontal trading range near $0.1850 on Friday but reversed its course on Saturday. As of writing, the pair was up 1.8% on a daily basis at $0.1940. With a decisive break above $0.2000 resistance, the pair could meet an interim resistance at $0.2030 before targeting $0.2065 (December 17 high). On the downside, $0.1850 (December 27 low/December 20 low) aligns as the immediate support ahead of $0.1760 (December 18 low/2-25-month low). 

Source

neallesh@yahoo.co.uk

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