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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 27/02/18

By:
Bob Mason
Published: Feb 27, 2018, 05:17 UTC

Monday's rally fizzled out and the vast majority of the majors were in the red this morning. Can the bulls take over again this afternoon? Regulatory chatter will be an issue.

Crypto Exchanges1

Bitcoin Cash Treads Water

It was certainly a day of two halves on Monday, with Bitcoin Cash having fallen to an intraday low $1,136.6 in the early part of the day, before a mid-day rally kicked in that saw Bitcoin Cash bounce to a day high $1,271.8 at the mid-way mark, the 11.9% rally coming in just a few hours.

The good news for the crypto market was that there was no immediate sell-off in response to the rally, with Bitcoin Cash closing out the day up 6.43% at $1,243.5.

Following in Big Brother Bitcoin’s footsteps, it was one of the better performers of the day, reversing some of its recent losses that have come off the back of a shift in sentiment towards the outlook for Bitcoin Cash in the real world.

At the time of writing, Bitcoin Cash was down 0.54% to $1,235.2, easing back from an intraday high $1,259.4 in what has been a relatively tight range early on.

For the day ahead, a move through its first major resistance level of $1,298 would support a run through to $1,350 levels, with the big test being whether investors will stay or hit the sell button.

The bulls look to be in control for now, but as always, the fear of a sell-off will likely continue to limit any moves through the resistance levels, with the ECB the latest central bank to make some noise on the need to regulate the cryptomarket, adding to the regulatory uncertainty.

BCH/USD 27/02/18 Hourly Chart

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Litecoin Goes Sideways

Any hopes of a Litecoin rally through to $300 levels at the start of the week were dashed on Monday. Litecoin found some early support, jumping 6% in the first hour of the day, to hit an intraday high $231.50, though even the roll out of LitePay was not enough for investors to hold on, with Litecoin going through a choppy middle part of the day that also saw a 2nd rally come to an abrupt end. Litecoin’s first major resistance level of $228.2 certainly held its ground through the day.

Litecoin ended Monday with just a 0.02% gain to end the day at $218.9, with a bearish trend having formed through the 2nd half of the day that continued through to the early hours of this morning, with Litecoin hitting an intraday low $212.1.

Having tested its first major support level of $212 this morning, Litecoin has managed to recover from steeper losses, but remained down 0.89% to $216.8 at the time of writing.

It’s looking a tad bearish for Litecoin this morning and it’s going to need more than LitePay to pull Litecoin up to $300 levels.

A fall through $212 would see sub-$200 support levels tested today, with the battle between the bulls and the bears continuing to drive plenty of volatility into the cryptomarkets that tests investor convictions.

LTC/USD 27/02 18 Hourly Chart

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Ripple in Reverse

Ripple’s XRP managed to close out Monday with a 2.4% gain to end the day at $0.92699. Things could have been a lot better had investors not flicked the sell switch through the middle part of the day, with Ripple having hit an intraday high $0.95263

The gains will have given little comfort however, with Ripple having failed to touch $1.00 levels since the Friday of last week and even then, the gains were coughed up to leave Ripple down in the red by the close.

At the time of writing, Ripple was down 0.61% to $0.9265, with Ripple looking to avoid having to spend yet another day at sub-$1.00 levels.

While the general sentiment has been negative and regulation continues to be the hot topic, Ripple is looking to make a move this morning.

With a first major resistance level of $0.963, a move through today’s intraday high $0.9434 would likely lead Ripple to test $0.96, though any moves beyond that may well be capped. A failure to move back through to $0.94 levels through the middle part of the day would likely see a reversal develop and, Ripple could test sub-$0.90 support levels if no breakout forms.

XRP/USD 27/02/18 Hourly Chart

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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