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Bitcoin, Ethereum, Ripple Prices Surge Higher; FOMO Santa Rally?

Bitcoin, Ethereum, Ripple Prices Surge Higher; FOMO Santa Rally?

2018-12-24 10:30:00
Nick Cawley, Analyst
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Bitcoin, Bitcoin Cash, Ethereum, Ripple: Prices, Charts and Analysis

  • Ethereum (ETH) and Ripple (XRP) soar as buyers take short-term control of the market.
  • Market turnover doubles to multi-month highs.

Cryptocurrency Market: More Double-Digit Gains

Last week’s crypto rally continues going into the end of the year with the market awash with double-digit gains on heavy volume. The market has turned from being heavily oversold to now being overbought in the short-term but buyers continue to push the market higher across the board. Trading volume has doubled to around USD 25 billion/day, a multi-month high, lending the rally credibility. The latest rally has had no particular trigger, although most coins were trading in heavily oversold territory, while the latest sell-off in the global equity space may have added some shine to cryptomarket space.

While this Sanata rally will help holders, the market still remains in a long-term downtrend with most cryptos down by 85% or more this year from January’s peaks. Any long-term rally will be driven by fundamental changes via regulaton or mass adoption of the underlying blockchain technology and not just by trader’s fear of missing out (FOMO).

Bitcoin, Ethereum, Ripple Prices Surge After Hitting Massively Oversold Conditions

Bitcoin, Ethereum, Ripple Prices Surge Higher; FOMO Santa Rally?

If you are interested in trading the cryptocurrency market, we have produced aDay Trading Guide to Bitcoin and Other Cryptocurrenciesto help you better understand this highly volatile asset class.

Ethereum (ETH) Up 60% in a Week

After trading in hevaily oversold territory, Ethereum has soared higher and is changing hands at levels last seen five weeks ago. The coin is now targetting the $167 - $187 level which guards the August 14 low/September 21 high at $250. The RSI indicator does show ETH as heavily overbought, confirming the IG Retail Indicator which shows that 91% of investors are net-long of Ethereum and have increased their net-longs further over the last week. This gives us a strong bearish contrarian signal.

DailyFX analyst and Elliot Wave expert Jeremy Wagner highlighted the potential rally in Ethereum and Ripple in one of his regular webinars recently.

Ethereum Four-Hour Price Chart (October - December 24, 2018)

Bitcoin, Ethereum, Ripple Prices Surge Higher; FOMO Santa Rally?

Investors remain net-long cryptocurrencies but recent changes give us a mixed trading bias across the space with some cryptos showing bullish contrarian readings while other remian negative. You can sign up to the IG Client Sentiment Indicator for free to get updated positioning data.

Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars

If you are interested in trading Bitcoin, Bitcoin Cash, Ethereum, Litecoin or Ripple we can help you begin your journey. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account so you can practice trading this volatile asset class.

What’s your opinion on the latest cryptocurrency rally? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.

--- Written by Nick Cawley, Analyst.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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