The recent market-wide correction sent investors into fear, but there is still a chance that a bullish breakout may come.
Key Takeaways
- Ethereum is holding well above a major support barrier, but breaking through it could be catastrophic.
- Meanwhile, XRP sits in a no-trade zone that will determine where it is headed next.
- Litecoin, however, is trying to regain the losses recently incurred.
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Ethereum, XRP, and Litecoin are holding above key support levels, suggesting that a bullish advance is not off the table yet.
Support Levels for Etheruem, XRP, and Litecoin
Crypto Briefing recently stated that Ethereum, XRP, and Litecoin were primed for a bullish breakout.
However, the commotion from a 50 BTC transaction linked to Satoshi Nakamoto triggered a sell-off that wiped out more than $30 billion from the entire market.
Even after the latest pullback, these three altcoins are holding steady above crucial support levels.
Ethereum, for instance, continues to trade within an ascending parallel channel that developed on its daily chart during March’s Black Thursday. Although the number two network took a 12% nosedive, the lower boundary of the channel contained the selling pressure.
The market has contained Ethereum within this boundary for the past three months.
The 23.6% Fibonacci retracement level and the 100-day moving average are currently adding an extra layer of support to this barrier. Consequently, only a candlestick close below this massive support zone will add credibility to the probability of a steep correction that some of the most prominent analysts in the industry have discussed.
Until that happens, it is reasonable to assume that the price history over the last three months will prove accurate, and Ethereum will rise towards the middle or upper boundary of the channel.
Along the same lines, XRP is being held by the 38.2% Fibonacci retracement level, but there is a significant resistance wall ahead.
The 23.6% Fibonacci retracement level, in combination with the 100-day exponential moving average, might continue to reject XRP from achieving its upside potential.
As a result, the area between $0.188 and $0.206 is a reasonable no-trade zone. A decisive daily candlestick close below or above this area will determine where the cross-border remittances token is headed next.
Finally, the selling pressure behind Litecoin was able to push its price below the 50-day moving average.
But this altcoin has been trying to regain this level as support over the past few hours. If it succeeds, LTC could bounce back to $50.
On the flip side, investors and market participants alike must pay close attention to the 38.2% Fibonacci retracement level that sits at $40.8. Closing below this support level may trigger a sell-off that sends it to $35 or lower.
Moving Forward With Ethereum, XRP, and Litecoin
While some crypto enthusiasts are celebrating Bitcoin’s Pizza Day, others are worried about what the future holds.
Indeed, the Crypto Fear and Greed Index has moved from a “neutral” position back into “fear” due to the recent price action.
Regardless of the fear, uncertainty, and doubt in the market, it is essential to have a robust risk management strategy, especially in a market where volatility is rampant.
In the long-term, the best way to benefit from the industry is to have “strong hands,” as crypto aficionado Adam Meister usually says. In the meantime, however, the support and resistance levels, as mentioned above, will be crucial to profit from the next significant price movement among Ethereum, XRP, and Litecoin.
