Big Coin Technicals: Ethereum (ETH), TRON (TRX), Litecoin (LTC), Ripple (XRP)

February 12, 2019 / by Bill Noble

We are observing a host of important inflection points in the crypto universe.

In Ethereum (ETH), a diamond formation can be seen on an intraday chart. $121 is an important pivot inside the diamond. That level comes from using analysis of volume (Figure 1).

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Diamond formations sometimes create wild moves in crypto markets. In our experience, there is usually an initial break out of the formation and then a subsequent reversal back through the other end of the formation. We call it a “fakeout breakout.”  

The width of the range of the diamond in Ethereum (ETH) is only about $3, so expect volatility soon. There might be a move to run stops below $119 before Ethereum (ETH) potentially turns back up. A convincing breakdown below $116 could be very negative.

Tron (TRX) seems to be holding near its 50-day moving average (Figure 2). If TRXBTC continues to hold 667 Satoshis, that could be constructive for TRXBTC. Tron (TRX) was the first a major coin to rally during January. So, we are paying very close attention to what happens here.

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Litecoin (LTC) also seems to be coiling in a very tight space. Support for Litecoin (LTC) on Coinbase is near $41.85 and resistance is at $43.63. This could be a coiling action for the next big move (Figure 3).

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Ripple (XRP) also appears poised to move. Ripple (XRPUSD) has broken above a key Fib speed resistance line and seems to be holding on a retest of that line (Figure 4). If resistance has become support, Ripple (XRP) may spike up. Since Ripple (XRP) and Ethereum (ETH) have roughly the same market cap at $12 billion, a move up in Ripple could drag Ethereum (ETH) higher.

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Bottom Line: The consolidation range in big coins seem tight. This could mean another big move is brewing. If stops get run on a flush lower in big coins, and the crypto market holds together, that could be positive. Conversely, if these coins go down and stay down, selling by whales in Bitcoin (BTC) could start again.

The Crypto.IQ Trading Desk has views on both Ethereum (ETH) and Ripple (XRP).

Join me there to see how their plan unfolds.