LITECOIN ANALYSIS: JUNE 2021
Litecoin was an early spin-off of Bitcoin and it shared a similar crash to Bitcoin. Here’s the technical analysis of LTC. Litecoin, after making an all time high of $413, fell roughly 65% to $268 in mid-May. Since the crypto market is still in the recovery phase, Litecoin has been consolidating in a very narrow descending triangle pattern between $195 and $150 on the daily time frame.
Currently, it rests on a crucial support zone from which it has bounced back in the past. However, this time is different. Litecoin has been consistently forming lower-highs and lower-lows which defines a bearish trend. In addition, it faces higher bearish volumes than bullish indicating the presence of short-sellers and it is currently trading below its 50-day and 200-day exponential moving average, all of which indicate danger ahead.
The Relative Strength Index and the MACD are indicating some hope of recovery for the coin. The RSI has given a positive divergence from its lower trendline and currently stands at 39.71 showing sideways to positive bias for the upcoming days.
The MACD is above the signal line highlighting a ‘buy’ call to investors. The technical analysis of LTC suggests bullishness.
Although the RSI and MACD indicate some recovery, investors should wait for signs of reversal from the support or some bullish volumes. Any close below $151 accompanied by bearish volumes could trigger heavy downsides with the coin targeting for the levels of $142 in the short term and $118 in the medium term. The technical analysis of LTC suggests some consolidation.
RIPPLE (XRP) ANALYSIS: JUNE 2021
Ripple (XRP) is one of the popular emerging cryptocurrencies in the market which recently made a low of $0.648. The coin did not make any major moves and formed a symmetrical triangle pattern on the 4-hour chart. However, it gave a breakdown of the critical zone of $0.839 which was its lower trendline.
The breakdown was caused by high bearish volumes indicating the presence of sellers and lack of buyers. Moreover. XRP is currently trading below its 50-day and 200-day exponential moving average. The 50-day moving average closed below the 200-day moving average, also known as the ‘Death Cross’. The investors must take this phenomenon as a caution.
The Relative Strength Index is signaling weakness for the coin as it gradually inches closer to the over-sold region, currently valued at 33.53. The RSI is making lower-highs and lower-lows and investors must wait before initiating long positions.
The MACD is sustaining below the signal line with bearish volumes thereby giving out a ‘sell’ signal to the investors.
Ripple has given a breakdown of the support zone or its lower trendline of $0.84 with heavy selling pressure coming. Unless it shows any signs of reversal or buying pressure, the coin will make its way towards the next demand zone of $0.67 to $0.64. The coin is expected to show reversal from there. However, fresh longs should be avoided in case the weakness continues even below $0.64.
SHIBA INU ANALYSIS: JUNE 2021
Shiba Inu coin is a relatively newer coin with its inception in August,2020. Its popularity came to end when the coin fell a whopping 80% from $0.000039 to $0.0000075. The coin has been trading well within a rectangular channel and is now showing signs of reversal after a hefty downward move. The reversal comes with a good bounce back from the lower trendline of the channel with bullish volumes almost twice the normal volumes.
Yet, Shiba Inu is very new to the market and is more-or-less a penny coin and carries huge risks due to illiquidity and volatility. The coin is trading right between its resistance zones of $0.000012 and support zones of $0.0000053. Breakout or breakdown of either level can trigger a good move. We maintain a sideways to bullish bias as the coin has recently crossed its 50-day exponential moving average.
The Relative Strength Index has finally moved to the neutral levels from the over-sold regions and currently stands at 47.64 again indicating a sideways to bullish bias. It has also given a positive divergence after a down move. The MACD, on the other hand, is below the signal line, and gives out a ‘sell’ signal to investors.
Shiba Inu is neither near its resistance not its support levels, rather in between showing indecisiveness. Investors must wait for the coin to approach either side with good volumes, till then use their funds for coins ready for a rally.