After a slight drop over the weekend, Ethereum has opened the week firmly above the 55-day moving average. That’s an indicator that this long-term support level is holding steady, and bears are unable to push prices below it. Going by this support level, it is also clear that Ethereum is forming a higher low on the weekly charts, which is an indicator of an impending price rise. Therefore, we can conclude that Ethereum is on a longer term reversal point, and offers a nice buying opportunity.
To make a more precise long entry into Ethereum, it is best to watch the day charts. In the day charts, Ethereum has broken below the 55-day moving average, and the next support level is at around $496. If it drops to this price level, it would make for a good long-entry, with the next upside resistance being at around $710 on the 200-day moving average. If it breaks above this level, we are likely to see it get to a high of $800 within the month of June. In essence, a long entry into Ethereum in the $530 – $490 price level offers the potential for good returns in the near future.
In the weekly charts, XinFin (XDCE) has started the week lower, just like the rest of the market. Bitcoin has already broken below $7500, and is headed lower towards $7100, pushing everything down with it. However, this looks like a short-lived drop, given that bitcoin is stabilizing at around $7200, and XinFin (XDCE) is stabilizing too. After a price drop from $0.004 to $0.0038, the selling volumes seem to be declining on the weekly chart. This makes the current price levels good for a long entry.
Looking at the day charts, confirms that this is a perfect setup for a good long-entry. XinFin (XDCE) is forming a double bottom, and intra-day volumes are increasing. That’s an indicator that buyers are taking over this market. If the price does not break below $0.0035 in the next few hours, it is likely to surge to around $0.0042, in the short-run, and $0.06 in coming weeks.
In the weekly chart, Ripple is holding strong above the 55-day moving average. That’s an indicator that despite the current drop in the market, buying pressure is slowly building up. If it holds at this price level, XRP is likely to start rising and push up to around $0.90 in the next few weeks. The impeding rise in the price of Ripple (XRP) is quite evident in the daily charts, where the price is entering into a range slightly below the 55-day moving average. That’s an indicator that this price level is still a strong support level. If the price breaks above this level, the next point of resistance will be at $0.85, which is the 200-day moving average price level.
Besides, once bitcoin rebounds, the upside potential of Ripple will also gain some more strength. That’s because part of why Ripple (XRP) has dropped is due to the drop in bitcoin.