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Stable coin Tether is being cited as one of the main reasons for the spurt in crypto prices that pushed total market capitalization above $221 billion on Monday (UTC time), but it was not a new issuance of Tether that was the catalyst for upward market movement.
There was news circulating about Tether (USDT) being delisted from various exchanges. This led investors to dump USDT, which lost its peg to the dollar and fell to as low as 85 cents, before recovering part of its earlier losses.
Anxious investors converted their USDT to other cryptocurrencies that led to a sharp rally. Additionally, the surge in prices would have triggered stop losses on the short positions, adding fuel to the rally.
It will be interesting to watch whether cryptocurrencies hold on to higher prices or give up recent gains in the next few days. Let’s watch the critical levels that will indicate a trend change.
Bitcoin skyrocketed to $7,550 intraday, but the bulls are struggling to hold the gains. This shows liquidation by traders who are stuck at higher levels.
If the bulls close (UTC time frame) above $6,850 levels, it will be a positive sign and will invalidate the bearish descending triangle pattern. $7,413–$7,600 might act as minor resistance, above which, the rally can extend to $8,400.
The next couple of days will confirm whether the breakout is genuine or a sucker’s rally. For now, traders can continue to hold their long positions with the stop loss at $5,900.
If the bears turn around and break below the support zone of $6,075.04– $5,900, the BTC/USD pair will become extremely negative and can nosedive to the $5,450 and $5,000 levels.
Ethereum is stuck inside the $192.5–$249.93 range. Today’s rally came close to the overhead resistance but could not break out.
A breakout and close (UTC time frame) above $250 can attract buying, pushing prices to the next resistance zone of $300–$322.57. If the bulls scale this zone, a new uptrend is likely.
The ETH/USD pair will resume the downtrend if it breaks below $167.32. We do not find a buy setup at current levels.
Ripple is attempting to pull back after taking support at the 78.6 percent retracement level in the recent rally.
Today, the pullback faced resistance at the 20-day EMA, which has started to slope down. Currently, the price is close to the $0.4255 level.
The XRP/USD pair will become negative if it breaks below the $0.37 level. Such a move might retrace the complete rally, plummeting prices back to $0.26913. Traders should wait for a reliable buy setup to form before initiating any trade.
Bitcoin Cash held the support line of the symmetrical triangle for the past four days and launched itself higher today, reaching close to the resistance line, where sellers emerged.
Though a symmetrical triangle is a continuation pattern, sometimes it acts as a reversal pattern. A breakout and close (UTC time frame) above the symmetrical triangle will signal a change in trend that can result in a rally to $660 and $880. Therefore, traders who are holding their long positions can keep their stops at $400.
Any break of the triangle and a move below $400 will be a negative development that can drag the BCH/USD pair to $300 or lower.
EOS has held the $5 level for the past four days. Today’s rally stalled just above $6. The key level on the upside is $6.829, above which we can expect a new uptrend to begin.
A break of $5 can result in a drop to the support zone of $4.4930–$3.8723. Therefore, traders can keep a stop of $4.90 on their long positions.
Above $6.8299, the EOS/USD pair can climb to $9 and higher. Until the breakout, volatile trading inside the range will continue.
The rally in Stellar broke out of the overhead resistance of $0.24987525 and the downtrend line of the descending triangle. However, the bulls are finding it difficult to sustain the higher levels. Currently, the price is back below the downtrend line and the overhead resistance of $0.24987525.
Traders can watch the $0.27 level on the upside. If the XLM/USD pair closes (UTC time frame) above this level, it will invalidate the bearish pattern, which is a bullish sign.
If the price remains below the $0.25 level, we might expect the range bound action to continue. The bearish pattern will complete on a breakdown of $0.184. Any long positions should be closed if the bears break and close below $0.165.
Litecoin continues to trade inside the $69.279–$49.466 range. The bulls have successfully defended the bottom of the range for the third time. This becomes a critical level to watch on the downside, as a break below this will resume the downtrend, plunging the digital currency to $40 or lower.
On the upside, the level to watch is $69.279. If the bulls close above this resistance, it will indicate the formation of a triple bottom pattern. Therefore, we suggest traders initiate long positions on a close (UTC time frame) above $70.
The rally can carry the LTC/USD pair to $94, which will act as major resistance. If this level is crossed, we can expect a new long-term uptrend to begin.
Though Cardano traded below the $0.073531 level for the past four days, the bears could not cause any major damage.
Today, the ADA/USD pair rallied sharply and came close to the overhead resistance of $0.094256 where sellers stepped in.
A breakout of $0.094256 can carry the digital currency to $0.111843, which is likely to act as a major resistance. On the downside, if the bulls maintain the price above $0.073531, the consolidation might continue a while longer. A break of the $0.0685 level will attract further selling and result in a retest of the critical support at $0.060105.
Monero has held the psychological support of $100 for the past four days. Today, the digital currency rallied close to the overhead resistance at $128.65 where it faced selling as on previous occasions.
If the XMR/USD pair breaks out of $128.65, it is likely to reach the overhead resistance zone of $142.71–$150. A break of the $100 level can result in a drop to the lower support of $81.
If the prices sustain above $107.80, the digital currency might remain range bound for a few more days.
TRON again broke out of the overhead resistance but failed to sustain higher levels. This shows profit booking and a lack of buying above the range.
The TRX/USD pair is back inside the $0.02815521–$0.0183 range. It will pick up momentum after it sustains above the range.
The traders can expect an up move to the $0.0415 level if the price closes (UTC time frame) above $0.02815521. If the bulls fail to achieve the breakout, the digital currency might extend its stay inside the range for a few more days.