Ethereum, Ripple & Litecoin Charts Suggest More Pain Ahead
Cryptocurrencies, outside of Bitcoin, have failed to garner much attention from buyers, and while the same can be said of sellers, the digestion of losses over the past month is likely to lead to more losses soon. Ethereum, Ripple, and Litecoin are all carving out a similar bear-flag pattern that should lead to another purge of speculative excesses.
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Ethereum selling to lead to April low at 358 and worse
Weak price action in ETH/USD has it set up to make another leg lower soon. It could continue to drift ever-so-slightly higher, but the developing bear-flag implies risk is skewed more heavily towards the downside. The April low at 358 and worse will be targeted once momentum finds its way back in the crypto sector on breaks of 417 and 405.
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ETH/USD Daily Chart
Ripple may soon move apex of H2 ’17 wedge at 25 cents
Ripple started to grow legs in the middle of the month, but that optimism was quashed as quickly as it was built. This has a break of 42 cents as a likely catalyst for selling pressure to once again emerge. The May 2017 peak just beneath 40 cents may help keep XRP/USD afloat temporarily, but we’re still looking for a full reversal of the rally out of the H2 2017 wedge, taking price down to the apex of the pattern at around 25 cents.
XRP/USD Daily Chart
Litecoin could go sub-50 in the not-too-distant future
Litecoin has a nicely developing bear-flag, and with a break of the underside trend-line of the pattern it should be set to see selling begin to pick up again. Once under 70 (considered only a minor form of support), there isn’t anything meaningful until just a shade under 50. There were a few inflection points there from last year, which may give it support. But from here to there leaves a lot of room for selling to dominate.
LTC/USD Daily Chart
Helpful Resources for Cryptocurrency Traders
Whether you’re a new or experienced cryptocurrency trader, we have several resources to help you;Introduction to bitcoin trading guide, indicator for tracking trader sentiment, and a weekly webinar discussing the latest developments.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.