During bullish price rises last week, Ethereum outperformed XRP to overtake it in terms of market cap and reclaim the position of the largest altcoin by market cap. The outperformance has continued this week with data from Messari showing the price of Ethereum increasing 5.09% over the past seven days whereas XRP has declined 1.21% over this period.
We are also seeing a stark contrast in the price action patterns both cryptocurrencies are forming. Ethereum has been forming a bullish trend continuation pattern and testing resistance, whereas XRP has been forming a bearish trend continuation pattern. We are just seeing Ethereum break above its bullish trend continuation pattern today.
Ethereum formed an ascending triangle pattern which consists of an upward trend line and a point of resistance. This pattern forming increases the likelihood that price can break above the resistance and continue to record price increases.
After numerous tests during the week, price broke above today, but traders need to monitor whether price can close above. We are also seeing the 4-hour RSI and MACD increasing to reflect buyer momentum. The 4-hour MACD is crossing its signal line to the upside, which many consider to be a bullish signal.
On the other hand, XRP has been trading within a triangle pattern on the daily timeframe. The lower part of the triangle connects higher lows from all the way back in August and the upper part of the triangle is steeper and connects lower highs from April. Given the steepness of the trendline at the top of the pattern compared to the trendline on the bottom, the pattern more closely resembles a bearish trend continuation pattern and increases the likelihood that price will drop going forward.
Price has consolidated for much of this week with multiple Doji candles forming on the daily chart. A Doji candle is a candle where the open and the close are around the same point and typically reflects uncertainty from traders.
The shorter-term 4-hour timeframe shows that although price continues to trade within the longer term triangle pattern, it is currently trading close to some critical levels, which could be a key reason for the consolidation. $0.286 has been an important point of support and $0.31 has been an important point of both support and resistance.
- Ethereum continued to outperform XRP this week
- Ethereum formed a bullish trend continuation pattern whereas XRP forms a bearish trend continuation pattern
- Ethereum broke above key resistance after numerous tests during the week
- XRP has consolidated for much of the week as it trades closely between two levels
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