The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Needless to say, all statements and views expressed below and any forecasts contained herein are solely based on the author’s particular opinion.
This analysis may not be treated as trading advice. RoboForex and Trustnodes bears no responsibility for trading results based on trading recommendations and reviews contained herein.
Over the Xmas week, cryptos are mostly finishing their correction and continuing falling down, at least at first sight.
Prices have not made new lows just yet, so, the descending trend might not become that strong right away, but a new falling impulse is still likely to start. The short term technical outlook shows a local pullback within the correction phase.
On H4, the previous descending trend corrected by over 30%, still unable to reach 38.20% Fibo, or $4,516.20. Then, a downtrend followed, hitting the ascending channel support, with the price heading now to the projection support at $3,798.80.
In case it gets broken out, too, it may test the entire correction stage by heading towards the low at $3,216.20. Conversely, if the price bounces off the support, a new local uptrend may help the correction carry on. If this is the case, 38.20% ($4,516.60) and 50.00% ($4,917.40) Fibo may be hit.
On H1, BTC started downtrending once the MACD and the Stochastic diverged. This downtrend is becoming steady now, as the Stochastic remains in the oversold territory, while the MACD is turning negative.
At this rate, the support breakout of $3,798.80 may allow the price to head down to the local support at $3,509.30.
On H4, EOS reached the 38.20% Fibo retracement level. The MACD and the Stochastic diverged, which marked the beginning of a descending move.
The price broke out the ascending channel support and is now heading towards $2.40. If this level gets broken out, the price will be likely to continue falling to $1.94, and then to the low at $1.55.
On H1, meanwhile, the crypto tested the descending channel resistance, and then, after a bounce, has started falling towards the support.
The MACD lines are turning negative, which means the further downmove is likely. The Stochastic, however, has formed a golden cross, which means the price may well bounce off to reach the resistance at $3.18.
On H4, ETH reached 50.00% Fibo and then went down abruptly. Currently, it has managed to reach the current ascending channel support at $125.70. Further on, the price may both bounce off and break out.
The MACD is all for bounce, with the price further going up to 61.80% Fibo, or $170.85. The Stochastic, conversely, formed a black gross, which may signal a breakout and the price moving to $83.00.
On H1, Ether is bouncing off the resistance and heading towards the support. The MACD lines are headed down, which means the support may be well broken out, with the price reaching $102.80.
This will be additionally confirmed in case the Stochastic forms a black cross in the oversold territory.
Technically, LTC is likely to start moving down heavily in H4. This was signaled by the Stochastic and the MACD divergence some time before. The correction went above 38.20% Fibo, which is a very common case for correction periods.
When the support got broken out, this allowed the price to head down further, and right away the price is already approaching its first target at $30.08. In case this level gets broken out, the price may reach $25.89.
On H1, the LTC is steadily moving down to reach the target support. The MACD is negative, while the Stochastic is perhaps forming a black cross, both signaling a descending move.
On H4, the XRP reached 61.80% Fibo extension and is now finishing its correction. Both the MACD and Stochastic diverged some time ago, signaling a possible reversal.
Currently, the price is trying to break out the ascending channel support and fall to the projection channel one at $0.3398. Once that support has been reached, the price may bounce upwards to $0.4276.
Conversely, the support may get broken down as well, in which case the long term descending channel support at $0.2576 may get hit.
On H1, the XRP price tested the support that has been broken out bottom up, and is now forming a steady descending channel. This one targets $0.3398, which is well confirmed by the MACD.