The crypto world caught a bid with volume earlier today timed with good news and many crypto's at critical trendlines. A well timed letter from the head of the FSB burst across news sources in advance of the G20 Summit stating that cryptos do not pose a risk to the global financial system. This takes pressure off of crypto in the form of uncertainty around policy statements/regulation that might come out of the summit. Note that many cryptocurrencies were at the bottom of trendlines today when the announcement occurred.
Ok, now onto the analysis. The lows printed on 2/06/18 did not hold, as XRPUSD broke below briefly today. However, price quickly reversed back above with strong volume confirming the area as support. RSI is heading up off lows, and MACD and Stoch crossovers off lows all confirm the bounce so far. These are good signs, but follow-through is critical over the next 24 hours to consider the short term downtrend since 3/05 broken. The lows today cannot be broken for this story to remain true. Good news is that the risk reward of a position here is very good since we are not very far from where the bullish case is proven wrong (ie. bottom is not in yet).
Longer term, price is below the 200 and 50 EMA's. Price moving above both these averages would be significant in the case for a resumption of the bull trend we saw dominating 2017. Alternatively, if the bear is still roaming wild, any rally attempts should be held back by these two averages. They are narrowing their gap every day with the shorter term average (50) moving down toward the longer term (200).
Short term bullish, but cautious and paying attention to next 24 hours of price and volume.
Ok, now onto the analysis. The lows printed on 2/06/18 did not hold, as XRPUSD broke below briefly today. However, price quickly reversed back above with strong volume confirming the area as support. RSI is heading up off lows, and MACD and Stoch crossovers off lows all confirm the bounce so far. These are good signs, but follow-through is critical over the next 24 hours to consider the short term downtrend since 3/05 broken. The lows today cannot be broken for this story to remain true. Good news is that the risk reward of a position here is very good since we are not very far from where the bullish case is proven wrong (ie. bottom is not in yet).
Longer term, price is below the 200 and 50 EMA's. Price moving above both these averages would be significant in the case for a resumption of the bull trend we saw dominating 2017. Alternatively, if the bear is still roaming wild, any rally attempts should be held back by these two averages. They are narrowing their gap every day with the shorter term average (50) moving down toward the longer term (200).
Short term bullish, but cautious and paying attention to next 24 hours of price and volume.