Bitcoin Cash, Litecoin and Ripple Daily Analysis – 21/05/18

Bitcoin Goes Defensive

Bitcoin Cash rallied 10.1% on Sunday, more than reversing Saturday’s 2.29% fall, to end the day at $1,205.7.

Following a steady start to the day that saw Bitcoin Cash take a minor fall to an intraday low $1,163.4, holding well above the day’s first major support level at $1,141.87, a morning rally saw Bitcoin Cash break through the day’s first major resistance level at $1,214.57 with relative ease to $1,250.5, coming within reach of the day’s second major resistance level at $1,252.63.

For the market bulls, Bitcoin Cash’s hold above the first major resistance level through the morning supported an afternoon rally that saw Bitcoin Cash break through the second major resistance level at $1,252.63 to an intraday high $1,312.6.

While the day’s high fell short of the third major resistance level at $1,325.33, selling pressure at the 23.6% FIB Retracement Level of $1,298 saw Bitcoin Cash pullback to sub-$1,300 levels by the day’s end.

In spite of the day’s rally, failing to move clear of the 23.6% FIB Retracement Level continues to support the near-term bearish trend.

At the time of writing, Bitcoin Cash was down 1.19% to $1,277.1, recovering from an early $1,257 low, with Bitcoin Cash facing plenty of resistance at $1,300, a morning high $1,304.9 failing to hold and more importantly, move clear of the 23.6% FIB Retracement Level at $1,298.

For the day ahead, with the weekend rally having provided some solid gains, Bitcoin Cash could be under pressure through the start of the week, investors continuing to be bearish in spite of double digit gains on Sunday.

A move back through to $1,300 levels would support a run at the day’s first major resistance level at $1,351.07, breaking free of the 23.6% FIB Retracement Level key for any sustainable rally through the day.

Failure to move back through to $1,300 levels to test the day’s first major resistance level will likely see Bitcoin Cash give up some of Sunday’s gains, bringing the day’s first major support level at $1,141.87 into play, though we would expect Bitcoin Cash to avoid ending the day at sub-$1,200 levels, barring materially negative news hitting the wires.

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Litecoin Looking to Consolidate

Litecoin gained 3.26% on Sunday, reversing Saturday’s 0.95% fall, to end the day at $139.39.

An early morning slide to an intraday low $132.2 saw Litecoin fall through the day’s first major support level at $133.08 before finding support from a shift in sentiment across the broader market. Litecoin rallied through the day’s first major resistance level at $137.02 and second major resistance level at $139.08 to an intraday high $140.7, before easing back to $139 levels by the day’s end.

Litecoin failed to move through the 23.6% FIB Retracement Level of $142, affirming the bearish trend, with Litecoin ending the week down 3.49%.

At the time of writing, Litecoin was down 0.63% to $138.5, Litecoin facing strong resistance at $140, holding back a move to test selling pressure at the 23.6% FIB Retracement Level of $142 at the start of the day.

Litecoin managed to recover from an early dip to a morning low 137.6, though a move back through $140 to the 23.6% FIB Retracement Level of $142 would be needed to support a possible bearish trend reversal in the early part of the week, the day’s first major resistance level also sitting at $142 levels.

Failure to move through $140 to test key resistance levels would likely see a reversal through the middle part of the day, bringing into play the day’s first major support level at $134.16.

With the bearish trend intact, any material deterioration in market sentiment could see Litecoin test sub-$129 support levels for the first time since Friday, as investors continue to fret over what lies ahead form a regulatory standpoint.

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Ripple Looking for a Positive Start to the Week

Ripple’s XRP gained 3.43% on Sunday, reversing Saturday’s 0.49% loss, to end the day at $0.69852, down 4.62% for the week, Monday through Sunday.

Ripple’s XRP tracked the broader market through the day, an early morning 0.66712 low holding above the day’s first major support level at $0.6592 before a late morning recovery and an afternoon rally saw Ripple’s XRP break through the day’s first major resistance level at $0.6905 and second major resistance level at $0.7070 to an intraday high $0.71105, testing selling pressure at the 23.6% FIB Retracement Level at $0.7112.

While unable to hold on to $0.70 levels, Ripple’s XRP was able to hold above the first major resistance level by the day’s end, though failing to break through the 23.6% FIB Retracement Level continued to support the bearish trend formed in late April.

At the time of writing, Ripple’s XRP was down 0.23% to $0.69697, with an early fall to an intraday low $0.68722 holding above the day’s first major support level at $0.6734 before recovering to $0.69 levels, Ripple’s XRP facing plenty of resistance at $0.70 early in the day.

For the day ahead, Ripple’s XRP would need to break through the 23.6% FIB Retracement Level of $0.7112 to test the day’s first major resistance level at $0.7173 and the near-term bearish trend, with any moves through to $0.72 levels likely to be in the hands of sentiment across the broader market.

Failure to move through to $0.71 levels in the middle part of the day would likely see Ripple’s XRP pullback through the morning’s low to test the day’s first major support level at $0.6734 before any support kicks in at sub-$0.67 levels.

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