Crypto Market: Ethereum (ETH) and Cardano (ADA) Could Breakout While XRP and Litecoin (LTC) Struggle to Hold Support
After the shocking market decimation inflicted by the ongoing Tether-Bitfinex scandal, altcoins have reacted in different ways. While some seem to have recovered quickly, others are struggling to regain support.
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Due to the recent crash, Ethereum failed to utilize momentum from its ‘golden cross’ moment and start a much-anticipated rally.
However, it has managed to hold support above its 50-day moving average (MA) which indicates that buyers have not completely lost faith in the worlds 2nd-largest cryptocurrency. With the price of ETH maintaining its position as a higher low, it is likely to now retest previous resistance points with more bullish intention and hopefully break above $170 again.
ETH/USD shorts remain relatively low and sentiment amongst traders appears to be positive based on recent upward movements.
Cardano (ADA) is another asset that looks to have a bright future in the short to medium term. While admittedly the asset faced heavy resistance at $0.095 and dropped a shocking 25 percent soon after, it remains up 6.6 percent over the past 30 days.
It has now found significant support at $0.069 and looks ready for a trend reversal as effects of the Tether/Bitfinex saga wear off.
After a long and arduous fight to remain above $0.30, XRP appears to have given in to seller pressure and broken down to $0.298. This is the third time it has dropped below $0.30 over the past few days, a strong indicator that bears are back in control.
However, RSI indicates the asset is floating close to oversold territory, so a rebound is still possible if it holds support above the critical $0.288 level. Analysts predict that if the SMA 20 crosses over the SMA 50 curve then bulls could regain some power.
XRP is one of the few top 10 coins in the red over the past 30 days, down 2.46 percent.
Litecoin recovered incredibly quickly after the crash and although losing a bit since has managed to maintain strong support above $71.00. However, volume has now dropped off significantly and support at $70 is waning.
For LTC to maintain above this level, the overall market would have to recover and bring in buyers. A drop below $70 would mean the next support level is at $67.75 with the daily Bollinger band lower curve at $69.50.
A strong month of growth means LTC remains up 17 percent over the past 30 days.