25 October marked a remarkable recovery for Bitcoin after the world’s largest crypto-asset jumped by 35 percent and crossed its $10,000 resistance. The altcoin market rallied likewise, courtesy of Bitcoin, as Ethereum registered a surge of 17.11 percent.
Although Bitcoin’s ascent breached major resistances, the same could not be said for the second-largest crypto-asset as ETH continued to consolidate below $200. At press time, the token was valued at $186.92. Despite the minor hike however, bearish sentiment was still observed upon analysis.
The 12-hour chart for ETH suggested that the hike on 25 October hardly made a difference for the token. The asset continued to consolidate under the psychological resistance of $200 and the present price movement pictured the formation of a descending triangle. The pattern suggested that ETH was bracing itself for a bearish breakout. At first glance, the immediate support for ETH was at $154.06, and the long-term support was placed at $130.27.
The fall in trading volume confirmed the validity of the pattern, but the MACD indicator was bullish for ETH, at press time.
The 1-day chart highlighted the same descending triangle pattern for Ethereum. However, other indicators suggested a clearer pattern. It was observed that the 100-Moving Average was still above the 50-Moving Average, since completing a bearish crossover on 13 August, and the 100-Moving Average was an active resistance for the candles. The depreciating trade volume suggested that investors’ interest was decreasing at press time, as the hike on 25 October failed to make a difference.
The Relative Strength Index was acting bullish, but upon analysis, it was observed that the indicator had managed to cross the 61.54 mark only thrice over the past 6 months, which suggested that a fall in buying pressure was imminent.
Ethereum failed to take advantage of the last surge and now, everything is falling in place for another bearish pullback.
Litecoin’s ailing price prepares for breach of descending channel
Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.
Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.
The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.
The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.
The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.
Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.