Weekly Cryptocurrency Price Analysis: Ripple, Litecoin, IOTA, Lumens, and other major coins
From the News
Details of last week’s G20 Meeting continue to make headlines. Even though there was nothing conclusive about Bitcoin from the Mark Carney led Financial Stability Board (FSB), there is a subtle message being passed around. Cryptocurrencies are not money. They don’t meet the three hallmarks that effectively classify them as such and therefore are a not a threat to economies.
Because of this, most G20 countries might treat them as assets subject to tax. According to a draft report, a conclusive policy step would be made in July once member states have enough statistics on the subject.
The news caused cryptocurrencies to spike but soon, news that Binance had been ordered to shut down their operations shook the market. As it stands, Binance is the largest cryptocurrency exchange in the world by trading volume and any form of regulatory threat would definitely cause a scare.
Binance CEO Zhao said in a statement that Nikkei showed irresponsible journalism as they denied such claims. To show their true global intentions, Binance plans to open their offices in Malta.
Remember the $530M worth of NEM which were stolen from CoinCheck? Well, NEM foundation was tracking them but it is now emerging that the hacker’s accounts now read zero. It cannot be traced and NEM Foundation is resigning.
Earlier, it was noted that some of the stolen coins could be traced to exchanges in Japan and Canada but the exact location of these hackers could not be pinpointed. It’s definitely disheartening to NEM investors.
After G20 Meeting regulatory reprieve, many thought that BTC and alt coins prices, in general, could turn an important corner. It didn’t. Even though prices are still higher and trending above last week’s lows, week ending 25 long upper wick signals strong sell pressure. Already, we can see those series of bear soldiers in the daily or 4HR chart.
In my view, the 61.8 percent Fibonacci retracement at $8,000 is influential and so far we can see how prices are reacting at this level even if bears are generally in charge. The reaction since the beginning of the year, especially by week ending February 11, a 3-bar reversal pattern, the Morning Star Pattern was hinting.
However, we can see the clean liquidation effect of the middle BB which separates buy and sell pressure. My recommendation is this: $7,200 or week ending March 18 lows remain our ultimate support. If a stochastic buy prints anywhere around $7,200 and $8,000 and there is immediate confirmation, then we can consider buying.
Generally, ETH prices are low and considering technical formations in the weekly chart, it may continue with the slide. From last week’s projection, every high and or stochastic sell signal continue to be a selling opportunity and that should remain as it is in the coming week.
Our first level of support is $410, the bullish break out level which set the bull ball rolling.
I recommend entry in the 4HR chart and to put things in perspective, we should look to short with every retest of the resistance trend line ideally when a stochastic sell signal prints.
At the moment, price action is testing our resistance line and well, if there is a bull break out, that will be the first time this month for prices to break above it.
Aggressive buyers may but with stops below $500 and aim for $650, $750 or until a sell signal prints from deep the overbought territory.
When trading Ripple, keep in mind that value erosion exceeds 80 percent from its all times highs and are still trading within December 2017 candlestick. This is where we should borrow from history and trend with caution.
Our entry shall be in the 4HR chart as always and here we note two things.
Ripple price action is moving inside a triangle with two support considerations at $0.55 and most importantly, $0.45, the bullish break out level.
Now, we are net bearish. However, that projection will be temporarily void if there are strong reactions between 45 cents and 55 cents as bullish engulfing candlestick prints and drive prices above 90 cents or until when a stochastic sell signal forms.
BCH/USD (Bitcoin Cash)
Evidently, BCH is in a range mode and even though prices are higher, the influence of $1,055 is clear.
Additionally, we can see that prices are just $110 above this year’s low and lest we forget, that’s another support line that shouldn’t escape our eyes.
Now, here’s the thing. As long as prices are below $1,055 and the resistance trend line, then we trade according to the week ending 18 bear candlestick. That also means we sell when a stochastic sell signal prints in the 4HR chart. Ideal targets should be between $750-2018 lows on the upper limit and March lows of $850 on the lower limit.
After our previous forecast, it only makes sense to continue with our NEO bearish stand. That’s regardless of whether there seems to be support in the 4HR chart following that minor bullish break out pattern early this week.
As it is, week ending March 18 bear engulfing candlestick sets the pace and direction of a trend. Consequently, this means that if indeed prices are turning the corner, buyers should push prices above $90.
If not every NEO high is a perfect selling opportunity especially if a stochastic sell signal prints at the overbought territory in the 4HR chart.
In the meantime, swing traders who are still short should aim at $50 which happens to be last year’s break out level.
Our projection still holds true and LTC sellers continue to drive prices lower. As the chart shows, the selling pressure at the weekly chart’s middle BB is clear and that’s in line with our plans. However, if you want to have a clear perspective, the 4HR chart resistance trend line is a good guide.
Time and time again, LTC tends to move lower with every resistance trend line retest. Therefore, this meaning we shall continue selling with our first targets at $130 then later $100 which as we said coincides with the 78.6 percent Fibonacci retracement level.
Last week’s forecast shall continue to hold true going forward. Even though that also means 80 percent erosion of IOTA prices, buyers should stay put and wait for perfect entry maybe when prices are below $1.
As it stands, our main resistance is at $1.5 and we can see that’s where sellers are picking up their momentum. It is for this reason that I recommend shorts with immediate targets of $1.
XLM/USD (Stellar Lumens)
Whatever happens, week ending March 18 bearish engulfing pattern should be our guide. It also means every Stellar Lumens high is a selling opportunity with feasible targets of seven cents being on the radar.
That’s the bullish break out level which ushered in buyers in late 2017. Because of this, our sell zones remains within 25 cents and 30 cents.
All charts courtesy of Trading View
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.