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Technical Analysis January 29, 2018: Bitcoin Cash, Ripple, Cardano
Bitcoin Cash, Ripple, and Cardano are currently in the top five of the cryptocurrencies rankings in terms of market cap at number three, four, and five respectively. In term of trading volume Ripple currently ranks number four, Bitcoin Cash ranks number six, and Cardano ranks number eleven, making all three currencies very liquid and easily tradable.
Currently, the entire cryptocurrency market seems to be in a “slow-down mode” as prices find an area of consolidation. News on the cryptocurrencies, both good and bad, seems to be the primary driver for significant price moves.
Furthermore, a significant move in one of the more popular cryptocurrencies, i.e. Bitcoin or Ethereum, causes moves in many of the others. It’s a good idea to be vigilant of all the top cryptocurrencies in terms of market cap and volume.
Bitcoin Cash (BCH)
Chart #1 below shows that Bitcoin cash has been range bound since January 22, 2018, with a support level at $1788.75, and a resistance level at $1498.87, which was tested near the end of the trading day today January 28th. Price has retraced to $1697.10 where it is trading at press time.
Throughout the time that Bitcoin cash has been trading in this range volume has been less than normal, and the momentum indicator has been hovering about the zero line. Bitcoin cash is more a reactionary cryptocurrency for which its price action is based on the movement of other cryptocurrencies. It’s very unlikely that Bitcoin cash will show any indications of breaking out of its range until the cryptocurrency market as a whole makes a substantial move.
Chart#1 Bitcoin Cash 30-minute
Ripple (XRPUSD):
Ripple’s price action has been showing some indications of potential upcoming upward price moves. Chart #2 below shows a 30-minute price chart this displays back-to-back triangle patterns with an overall upward trajectory. This comes after bounced off of a significant support level at $1.17 just two days ago on January 26th.
Chart#2 Ripple 30-minute
Each asymmetric triangle pattern is followed by an upward price move with strong volume that exceeds the high of the triangle pattern, and is then followed by a price dip that forms another triangle pattern with the lower trend lines of each of the triangle patterns forming an overall upward trend line (as is displayed in purple in Chart #2). This pattern is indicative of interested traders and investors buying Ripple on the price dips. If the pattern continues, there is a high probability that an upward move is forthcoming.
Chart #3 Cardano 30-minute
Cardano (ADAUSDT):
Cardano has also traded in a range in which it has been trading since January 26th, as displayed in chart #3 above. A resistance level of $.6548 has been tested three times, while a support level of $.60 at the lower edge of the range has also been tested twice, and is being tested again at the time of this article.
Volume has been very tepid as price action winds through the range, and the momentum indicator shows weak momentum when the range is tested. It seems traders/investors of Cardano are taking a “wait-and-see” posture and holding off until this period of consolidation that the entire cryptocurrency market is undergoing comes to an end and volatility and volume pick up again.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of coinmarketcap.com