Home Ethereum Crypto Black Friday Blowout Comes Early, But Who’s Buying ETH, XRP, and LTC?

Crypto Black Friday Blowout Comes Early, But Who’s Buying ETH, XRP, and LTC?

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Black Friday appears to have arrived earlier within the cryptocurrency market. But, in contrast to the actual Black Friday, no one appears to be speeding in to purchase cryptos on the present low cost fee.

According to the Crypto Fear and Greed Index (CFGI), the general market sentiment became “extreme fear” as buyers anticipate an additional downturn. However, historic knowledge reveals that each time the CFGI goes into “extreme fear,” a shopping for alternative is introduced.

The following technical evaluation will consider whether or not Ethereum, XRP, and Litecoin are certain for a deeper retracement or a bullish impulse.

The market is at “extreme” ranges of “fear.” Source: The Crypto Fear and Greed Index

Ethereum (ETH)

In the last few weeks, Ethereum fell over 30 percent. This cryptocurrency went from trading at a high of $199 on Oct. 26 to a low of $138 yesterday. Despite this significant bearish impulse, ETH is now signaling a pullback to $181.

As a matter of fact, the TD sequential indicator presented two buy signals. These bullish signs came in the form of a red nine on both the 1-day and 12-hour chart. This technical index estimates that Ethereum could rise for one to four candlestick or begin a new bullish countdown.

Along the same lines, a reversal doji formed of ETH’s 12-hour chart. This candlestick pattern perceives a change in momentum from bearish to bullish. Closing above the 75% Fibonacci retracement level could validate the optimistic outlook. If that happens, Ether could surge to the next level of support around the 65% Fibonacci retracement level that sits at $181.

Nevertheless, a spike in sell orders that get Ethereum to close below the recent low of $138 could be catastrophic for its price. ETH could then try to test the $115 support level.

Ethereum could be signaling a rebound. | Source: TradingView

XRP

XRP’s price was contained within the $0.24 support level and the $0.30 resistance level since mid-August. However, the recent price action took it to break below support to hit a low of $0.22. If the selling pressure behind this cryptocurrency continues, it would likely drop to the next level of support around $0.20-$0.17.

Adding to the bearishness, a death cross between the 30-day moving average and the 50-day moving average developed on XRP’s 1-day chart. This is a bearish formation that signals that a new downtrend is underway.

Closing above the 7-day MA could invalidate the bearish perspective. And, if the volume is strong enough, XRP may move back up to test the $0.30 resistance level once again.

XRP presents bearish signs. | Source: TradingView

Litecoin (LTC)

Since July, Litecoin’s price action seems to be characterized by a series of bear flags forming on its 1-week chart. These are considered a continuation pattern. They tend to develop after significant corrections, which are known as the flagpole. And, they are followed by consolidation, known as the flag. Finally, bear flags lead to breakouts in the same direction as the initial price movement.

LTC currently appears to have reached the target given a bear flag with the recent drop it experienced. The target was determined by measuring the height of the flagpole, which is approximately 27.50 percent. This is nearly the same percentage that Litecoin loss over the last week.

On the upside, LTC would have to break through the $49.50 resistance level. But, the significant resistance cluster is found between $55 and $60. Conversely, this cryptocurrency would likely further retrace if it closes below $44. From that point, the next levels of support sit around $40 and $36.

Litecoin is completing another bear flag of its 1-week chart. | Source: TradingView

Despite the market downturn, the cryptos previously analyzed could be presenting bullish opportunities that are only given after such steep declines. This could be why the CSO at Blockstream, Samson Mow, said that those who were “rattled” by the recent bearish price action, are not “worthy of enjoying” it.

Although it’s clear the place the market can be heading subsequent, ready for affirmation earlier than taking a place out there is at all times the choice that poses decrease ranges of danger.

Disclaimer: The technical evaluation above shouldn’t be thought-about buying and selling recommendation from CCN. The author owns bitcoin, Ethereum, and different cryptocurrencies. He holds funding positions in several cryptos however doesn’t interact in short-term or day-trading.

This article was edited by Samburaj Das.

Last modified: November 23, 2019 10:44 AM UTC



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