Fintech week begins today in New York, and as the first matter of business is the 3rd annual blockchain conference, it seems suitable to analyse two cryptocurrencies whose protocols differ consierably yet still rely on a blockchain.
Litecoin entered the market as a lightweight alternative to Bitcoin and has regularily found itself in the top five of cryptocurrencies. It has also made managed to take the third spot on Coinbase, who currently only trade three cryptocurrencies on their platform.
LTC/USD Technical Analysis
Chart 1: LTC/USD Daily
– Held on major trend line that begin at the start of Litecoins rapid growth on 30/03/17.
– Respecting a gentle trend line that is acting as support.
– Weekly open above the monthly pivot and holding above provides support.
– History tells us that a open above the monthly pivot is usually respected and likely to continue higher.
– Lots of resistance levels in close succession ahead, with major level at 50.
Resistance: 50.00, 53.13 55.40.
Support: 44.08, 38.00 36.
LTC/USD is currently consolidating. Markets of this nature often have multiple levels above and below and can be difficult to predict. Identifying levels of support and resistance to buy and sell at are advisable, or the safer option is to wait for an impulsive break in either direction.
Given the recent uptrend we have seen in Litecoin, my bias is to the upside and would suggest to look to buy at support or a break through the all time highs.
Contrary to Litecoin, which has plenty of similarities to Bitcoin, Ripple is very different from Bitcoin.
Essentially deriving from a protocol of trading debt, it seems Ripple has always had a method of centralisation, yet still operates a blockchain with people add to the ledger.
Despite the difference with Bitcoin, the token that is now being traded (XRP) has been trading in a similar vain to that of other crypto coins.
XRP/USD Technical Analysis
Chart 2: XRP/USD Daily
– Currently sitting just above a support level at 0.15.
– In a consolidatory period as it has created inconsistent highs and lows. Compared to that of a trending market that will consistently create higher highs and higher lows when moving higher (and vice versa, if trending lower).
– Opened the week below the monthly pivot, however not proven to to be respected in the past.
– Down trend line has been broken, suggesting the momentum to the downside is slowing.
Resistance: 0.1829, 0.2013 0.2360.
Support: 0.1502, 0.1280 0.1090.
Since XRP/USD reached its all time highs in the middle of May, we have seen this market move lower, however not in a traditional trending market. If a market is not trending is it either retracing or ranging, and given the huge growth we have seen I would suggest this is a retracement.
This means we should be looking for buying opportunities. However, in the short term this market is consolidating from its current move lower, which suggests it could still have further to go.
We are on support and so this would be an area you can look to buy, however I would feel much more comfortable in taking a long position in this market once we break through the 0.2013 level, which would ultimately mean we have created a new high and as long as we do not take out the low of 0.1280, this market would then be in an uptrend.