Cryptocurrency Market Simmers, Waiting For Catalyst
With Bitcoin prices wallowing at their new support level traders are waiting for the next catalyst. The most likely culprit will be the halvening next year but that doesn’t mean that aren’t trades to be made before then.
Ethereum; Moving Up From A Bottom
Ethereum is consolidating above its short-term moving average and looking bullish. The world’s “most advanced” cryptocurrency has formed a double-bottom reversal pattern and on the verge of confirming a full reversal in price action. Resistance is just above today’s price action at the $190/$200 and likely tested at least. MACD momentum is bullish but weak, the stochastic is where the action is now. Stochastic is firing an entry signal that points to a retest of $200 and possible break to new highs. If $200 is broken a move up to $220 and $240 is likely.
Ripple, XRP, Who Cares
The folks over at Ripple say they have no control over the token that drives their blockchain but so what? XRP or Ripple it’s still a token that no one really wants to own. The coin is showing signs of a bottom here but they are weak. The coin is still well below resistance targets at the recent highs and showing bearish signals. XRP may find support at the short-term moving average and produce a bounce but I’m not counting on it. More likely, XRP will drift sideways to lower until some more substantial news comes out.
EOS, There’s A Bottom In Play Here
If you want to find a coin, token what-have-you worth trading all you have to do is look at the charts. The chart of EOS is a prime example. It is showing a much clearer indication of bottom that XRP and that tells me this is a coin people want to own. EOS hit a new low in late September, moved sideways, and then moved higher to regain the upper side of the short-term EMA. This movement can be considered a double-bottom and/or a tower-reversal due to the two long candles that formed at either side of the pattern. The caveat is the reversal is still early and weak, prices are moving higher but have not yet moved above the double-bottom baseline. The baseline is just above today’s price action near $3.50, a move above that would be very bullish. At that point I would expect to see EOS advance to $4.00 and $4.50.