Bitcoin (BTC) has continued its uptrend. It broke above the overhead resistance of $5,900 on May 7 but could not close above it. However, we are not seeing any profit booking or aggressive shorting at this critical resistance. Both the moving averages are trending up and the RSI is in the overbought zone. This increases the probability of a rally to $6,480.54. Traders can trail their stops on the remaining long positions to $5,500. If the price sustains above $6,000, the stops can further be tightened to $5,800.
The first sign of weakness will be if the BTC/USD pair turns down from current levels and breaks below the 20-day EMA. Below this support, the next major level to watch is $4,914.11. If this level holds, the pair might consolidate between $4,914.11 and $5,900 for a few days. The trend will turn negative if the price sinks below the 50-day SMA and the critical support at $4,914.11.
Ethereum (ETH) triggered our buy proposed at $192 and rallied to an intraday high of $198.62 on May 7. However, the rally could not scale the psychological resistance of $200 and it quickly gave up all its gains. It corrected to the 20-day EMA, which is providing some support. The 20-day EMA has started to slope up and the RSI is in the positive zone. This suggests that the bulls have an advantage in the short term.
If the ETH/USD pair breaks out of $200, it can move up to $225 and above it to $256. Traders can trail the stops to $165 if the pair sustains above $200 for a day. The digital currency will weaken if the bears sink the price below the breakout levels of $167.20 and the 50-day SMA. For now, the stops can be retained at $146.
Ripple (XRP) has been trading close to the 20-day EMA for the past few days. A breakout of the moving averages can propel it to $0.33108, which is major resistance. If the bulls fail to scale this level, the digital currency might continue its consolidation for a few more days.
However, if the XRP/USD pair breaks out and closes (UTC time frame) above $0.33108, it can move up to $0.37835. A breakout of this level is likely to start a new up move that can carry the pair to $0.45 and higher.
On the other hand, if the pair turns down from the current levels and plummets below $0.27795, it can correct to $0.24508. As the cryptocurrency has been a huge underperformer, we will wait for a confirmation of the start of a new uptrend before suggesting a trade in it.
The bulls have been defending the moving averages for the past few days. A bounce from the current levels will carry Litecoin (LTC) to $84.3439 and above it to $91. The moving averages have flattened out and the RSI is close to 50. This suggests range-bound trading in the next few days.
The LTC/USD pair will turn positive if it breaks out and closes (UTC time frame) above $91, as it will complete a cup and handle pattern. This has a target objective of $158.91. Conversely, the pair will turn negative if it drops below the support zone of $66.70 and $60.198. We will wait for the digital currency to close above $91 before suggesting a trade in it.
EOS has been trying to stay above the uptrend line of the rising wedge for the past few days. The 20-day EMA is flat and the RSI is at the center. This points to a consolidation in the short-term.
If the bears sink the digital currency below the uptrend line of the wedge, it can fall to $4.4930 and below it to $3.8723. If both these strong supports fail to hold, the next level to watch is $3.20.
On the contrary, if the bulls defend the uptrend line and the EOS/USD pair rebounds sharply from the current levels, it can rally to $5.50 and above it to $6.0726. We expect the pair to face stiff resistance at $6.8299. We do not find a buy setup at the current levels; hence, we are not suggesting a trade in it.
Stellar (XLM) has slipped to the critical support at $0.09478125. If the price slips and closes (UTC time frame) below this support, it can slide to $0.080. The 20-day EMA is sloping down and the RSI is close to oversold levels. This suggests that the bears are in command.
Contrary to our assumption, if the XLM/USD pair rebounds sharply from the current support and breaks out of both the moving averages, it will indicate the possibility of a resumption of the recovery. We will wait for the pair to stop falling and form a reliable bullish pattern before recommending a trade in it.
Cardano (ADA) has dipped close to the critical support of $0.063230. If this support breaks, it can plunge to $0.040. The moving averages have completed a bearish crossover and the RSI is in the negative zone, which shows that the bears have the upper hand.
However, if the support at $0.063230 holds, the bulls will again attempt to break out of the moving averages and rally to $0.094256. The ADA/USD pair will complete a reversal pattern on a breakout and close (UTC time frame) above $0.094256. This pattern has a target objective of $0.161275. Therefore, we will suggest long positions on a breakout and close (UTC time frame) above $0.094256. Until then, we remain neutral on the pair.
Tron (TRX) has been inching higher for the past few days. It is attempting to rise to the top of the $0.0183 to $0.02815521 range. The digital currency has stayed in this range for almost nine months. Attempts to break out and break down of it were short-lived.
If the TRX/USD pair turns down from the resistance of the range, it will extend its consolidation for a few more days.
On the other hand, a breakout and close (UTC time frame) of the range will be the first sign that the markets are keen to start a new uptrend. Therefore, we retain our buy recommendation given in our earlier analysis.
Contrary to our assumption, if the price plunges from the current levels, it can drop to $0.02094452 and below it to $0.0183.