The Good, the Bad and the Extremely Ugly Crypto
- XRP is in a borderline position and leaves little room for doubt.
- Bitcoin demonstrates its power and positions itself as the emerging leader.
- Ethereum is in an intermediate situation, far from risk but also from opportunity.
The second week of September comes to an end, and it is an excellent time to zoom out and examine the big picture.
The apparent low volatility that we are witnessing in recent weeks hides critical situations that endanger the macro technical structures for top leaders of the cryptocurrencies market.
It is essential to highlight the fact that since last December’s lows, price development has been very disparate between the main assets of the market.
Bitcoin has developed best, especially in the retracement stretch from recent highs of $14,000.
Ethereum moved up like Bitcoin, but in the retracement phase from the high of $363.5, has fallen much more than Bitcoin as its structure weakened.
XRP deserves a separate mention. Ripple LLC’s product had ignored the bull market of 2019 but has been unable to escape the bearish moments. The technical situation of XRP is grave and very dangerous. Below the $0.237 price level, any remaining bullish sentiment will have evaporated, and a scenario of sharp falls below $0.20 opens up.
ETH/BTC Daily Chart
The ETH/BTC cross is currently trading at the price level of 0.0173 and continues to pay for the failure to break above the 0.018 level.
Below the current price, the first support level is at 0.017, then the second at 0.0155 and the third one at 0.0131.
Above the current price, the first resistance level is at 0.018, then the second at 0.019 and the third one at 0.020.
The MACD on the daily chart shows an attractive profile. The indicator gains some bullish setup and even hints at an improvement in the opening between the lines. Should this profile develop, it would be a strong bullish move.
The DMI on the daily chart shows bears taking advantage after yesterday’s draw. It is not a definitive move, and we may see a change in direction in the short term.
BTC/USD Daily Chart
BTC/USD is currently trading at the $10.322 price level, after surpassing the 50 period exponential and 100-period simple averages on Thursday. Today, the movement is downwards, and the closing price will be crucial.
For the medium term, the bullish break level is at $11,300, while the bearish critical support level is at around $10,100. A loss of this support level now would be quite harmful.
Above the current price, the first resistance level is at $10,800, the second at $11,200 and the third one at $14,000.
Below the current price, the first support level is at $10,000, then the second at $9,650 and the third one at $9,120.
The MACD on the daily chart moves just below the neutral line of the indicator. This obstacle is an added resistance to Bitcoin. The profile remains bullish, and the opening between the lines has decreased but is still active.
The DMI on the daily chart shows the bulls taking control but with a tiny advantage – that does not guarantee continuity. The ADX moves below the 20 levels, indicating a lack of trend.
ETH/USD Daily Chart
ETH/USD is currently trading at $179.5 and maintains its pulse at the critical resistance level of $180.
In the medium term, ETH/USD will give a bullish signal with a close above $190, while a bearish signal is the loss of the $160 support level. Ethereum is in a reasonably comfortable position.
Above the current price, the first resistance level is at $180, then the second at $190 and the third one at $195.
Below the current price, the first support level is at $170, then the second at $160 and the third one at $155.
The MACD on the daily chart shows continuity with the bullish profile for the entire week. Both the slope and the opening between the lines are maintained. The current favorable structure only threatened by the presence of the 0 levels of the indicator.
The DMI on the daily chart shows bears dominating the pair but losing the advantage with each passing day. Bulls also lose momentum, clearly reflecting the lack of strength that has prevented them from breaching the $180 level.
XRP/USD Daily Chart
XRP/USD is currently trading at $0.253, after narrowly escaping a close below $0.25 yesterday. As I have explained in the header of this article, XRP is at a critical level and cannot afford any further retracement.
Looking to the medium term, XRP/USD has the bullish signal level at $0.40, while a close below $0.25 may be dangerous.
Above the current price, the first resistance level is at $0.258, then the second at $0.267 and the third one at $0.275.
Below the current price, the first support level is at $0.253, then the second at $0.237 and the third one at $0.21.
The MACD on the daily chart continues to cross upward in a surprising way. After four days of declines, the indicator loses some of its inclinations but does not cross downwards. Expectations remain bullish, albeit remote.
The DMI on the daily chart shows bears maintaining control of the pair, but losing strength in the last few trading days despite falls. The bulls, on the other hand, do not manage to improve either and continue to move downwards — a negative forecast in the short term.