Crypto Update: Ripple Leads Altcoin Surge, Hits $0.85, as Bitcoin Tests Trendline

By April 20, 2018 Ripple
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The two-faced, but generally bullish price action continued in cryptocurrencies today in early trading, with the major altcoins adding to their recent gains, while outperforming the relatively weak Bitcoin. As the largest coin is still below its recent short-term high at $8400, the total value of the segment is hovering just above the $350 billion mark, despite the strong performance of Ethereum, Ripple, and Bitcoin Cash. Ripple hit the next target near $0.84 overnight as we expected, while Ethereum topped $575 amid the broad rally, while our trend model switched to neutral with regards to the leaders.

Even though Ethereum is clearly stronger than Bitcoin from a short-term perspective, the two coins are in very similar technical setups, trading right at the long-term trendline in very strong resistance zones. Should they break out above those levels, a major trend change would be confirmed in the segment, although the risk of a failed move would be still present.

BTC/USD, 4-Hour Chart Analysis

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Bitcoin might be preparing for a move above primary resistance today, and with the declining trendline also in the area, a surge in trading activity is likely. A quick move to the $9000-$9200 zone is in the cards, but given the recent short-term weakness, short-term traders could take some chips off the table, even as we expect the rally to continue. The new uptrend is still not confirmed in BTC, while most of the altcoins are already formed a pattern of higher highs and higher lows. Above the zone near $9000, the next target is at $10,000, while support is found just above $7650.

ETH/USD, 4-Hour Chart Analysis

Ethereum is testing the declining trendline as well, and the coin is now in a clear short-term uptrend, so a move to the next resistance zone near $625 is likely in the coming days. The MACD indicator is bullish, and there is still room for gains before it enters overbought territory. That said, given the strong resistance in the area ahead, short-term traders should slightly reduce their positions and wait with entering new trades, while long-term investors should hold on to their coins. Above $625, further resistance is ahead at $735 and $780, while primary support is at $500.

Leaders Stretched After Strong Advance

XRP/USD, 4-Hour Chart Analysis

While the price action is positive from a long-term perspective, some of the coins are once again overbought short-term, and traders shouldn’t chase the leaders here, with the likes of Monero, Ripple, Dash, and Stellar already being ripe for another pullback.

As correlations continue to break down, those coins that are not yet overbought could be in for further gains, with the early leader of the rally, EOS just moving out from its short-term consolidation pattern. The next days could be decisive about the fate of the rally, but for now the encouraging long-term setup is still in place, and the odds of a durable upswing are high.

Stay tuned for our detailed technical analysis coming out later on today.

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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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