However, after the sharp rally of the past few days, profit booking can be seen across the board today, as prices on all the top 10 cryptocurrencies are down.
Does this put a stop to the recovery and will Bitcoin prices plummet below $6,000 levels once again? After trading above $8,000 for three days, profit booking set in that dragged the price to just under $7,000. We had planned to close the long position today but before that, the fall hit our recommended stop loss at $7,100.
The trend is positive as both the moving averages are sloping up and the RSI is still in positive territory. If the 20-day EMA holds, the bulls will again try to push the BTC/USD pair back above $8,500.
On the other hand, if the bears sink the pair below the 20-day EMA, the momentum will weaken and the fall can extend to $5,900. We will wait for the price to find support and indicate a resumption of the uptrend before suggesting a long position once again. Hopefully, the traders would have closed some more of their existing long positions during this rise.
The pullback in the ETH/USD pair has dragged it to the support at $225.39. We expect the bulls to defend this support. If successful, we anticipate another attempt to push the price towards $300.
But, if this support breaks, a fall to the 20-day EMA is probable. If the traders are still holding any positions, they can raise the stop loss to $200. The stop loss can be trailed higher if the pair rebounds off $225.39.
Ripple (XRP) rallied above $0.450 on May 15 and 16, but it could not sustain the higher levels. Profit booking has dragged the price below the support at $0.37835. The bulls are attempting to hold the price above the 20-day EMA.
The zone between the 20-day EMA and $0.33108 is likely to act as a strong support. If the XRP/USD pair bounces off this zone, we anticipate a move back to $0.45. On a breakout above $0.45, the pair can rally to $0.60, with minor resistances at $0.50 and $0.55.
Traders can watch and buy a small position (about 30% of usual) closer to $0.360 if the support zone holds for another day. However, no trade should be attempted if the bears sink the digital currency below the 20-day EMA.
Bitcoin Cash (BCH) turned down from close to the resistance line of the ascending channel on May 16. The price has dipped to the 20-day EMA, which is likely to act as a support. Both the moving averages are still sloping up and the RSI is in the positive zone.
If the BCH/USD pair bounces off the 20-day EMA, it can move up to the resistance line of the channel once again. On the other hand, if the bears sink the pair below the 20-day EMA, it can correct to the support line of the channel. We will wait for the price to bounce off the support line of the channel before proposing a trade in it because a breakdown of the channel will turn the trend in favor of the bears. It has broken down of the support at $91, which is a bearish sign. Currently, the bulls are trying to hold above the first support at $84.3439. If successful, we anticipate another attempt to breakout above $91. We will raise it in the next couple of days if we find that the bulls are not able to push the prices higher.
The LTC/USD pair has a slew of supports between $74.6054 and $84.3439. If these supports fail to hold, the pair can plummet to the critical support at $66.47. The trend will turn bearish if the support at $66.47 breaks down. The price can now correct to the moving averages, which is likely to act as a strong support. If the price bounces off this support, the bulls will again try to breakout of the overhead resistance. Above $6.8299, the digital currency is likely to pick up momentum. Both the moving averages are sloping up and the RSI is in the positive territory, which suggests that the bulls have the upper hand.
But if the EOS/USD pair breaks down of the moving averages, it can slump to the bottom of the range at $4.4930. If the pair remains range bound, we will attempt to buy the next dip close to $4.4930. The trend will turn bearish if the support at $3.8723 cracks. It continues to be in a strong uptrend with both the moving averages sloping up and the RSI in positive territory. The digital currency has not given up much ground, which shows that the bulls are not keen to close their positions yet.
On the upside, the BNB/USD pair can continue towards the resistance line, which is likely to act as a barrier. If the bulls can breakout of this resistance line, the pair will pick up momentum. Support on the downside is at the 20-day EMA and below it at the 50-day SMA.
Stellar (XLM) rallied above the overhead resistance of $0.14861760 on May 16 but could not close (UTC time frame) above it. The price is currently testing the breakout level of the long-term downtrend line.
If the XLM/USD pair bounces off the long-term downtrend line, it will again try to rise above $0.14861760.
On the other hand, if the bulls fail to propel the price above $0.14861760, it will remain range-bound for a few more days.
Though Cardano (ADA) rallied above $0.094256 on May 15 and 16, it could not close (UTC time frame) above this level, which was our prerequisite for buying in our previous analysis.
The ADA/USD pair has dipped to the moving averages where it is finding some support. If the support holds, we expect the bulls to attempt to push the price back above $0.094256 once again. A close (UTC time frame) above the overhead resistance will complete the rounding bottom pattern that has a target objective of $0.161275. The trend will turn negative if this support gives way.
Tron (TRX) closed (UTC time frame) above $0.02815521 on May 15 and thus triggered one-half of our buy recommendation given in an earlier analysis. It suggests that the breakout was fake and the digital currency is not finding buying support at higher levels.
Currently, the bulls are trying to keep the TRX/USD pair above the moving averages. On the other hand, a failure to rise above $0.02815521 will increase the stay inside the range.