Signs of upward movement with Constantinople on the horizon
- ETH/BTC seems willing to lead a new upside segment.
- Ripple remains unclear about the intrinsic value of XRP.
- BTC/USD remains above $4,000 and may break higher.
The day begins in Europe with green screens, in the wake of some upward moves that were seen at the close of the American session, as I explained in my article yesterday.
Yesterday, the ETH/BTC reached the first support level and showed a high probability of resuming the bullish momentum. The technical target for this new bullish momentum is at the price level of 0.0525 Bitcoins for Ethereum.
Moving onto other issues, Ripple announced yesterday that it had reached 200 clients for its X-Rapid transfer service. Brad Garlinghouse, the CEO of Ripple, was confident that much of the financial industry would implement its technology soon. The capital transfer market is currently dominated by SWIFT, based in Belgium, controlling a two trillion dollar market.
For months I have been raising the need for a clear definition of the role of the XRP token in the parent company’s strategy. For now, its primary utility has been to provide financing to Ripple, so if it does not change its specific service, it should be considered as equity and acquire ownership rights over the company. In no case would it be acceptable that after being a vehicle to raise capital to finance the expansion of the company, XRP does not capitalize on the successes of this.
If the company comments on the matter, then the value of XRP could shoot towards the Moon at the very least.
Do you want to know more about my technical setup?
BTC/USD Daily Chart
BTC/USD is currently trading at the $4,018 price level, down from $4,110 yesterday in a second attempt to beat the resistance represented by the EMA50 at the $4,134 price level.
Above the current price and beyond the EMA50, the first resistance level is at $4,400 (price congestion resistance). The second resistance level is at $4,900 (price congestion resistance). The third resistance level is at $5,070 (SMA100), entering a complex and strategically critical zone that extends beyond the $6,000 level.
Below the current price, the first level of support is at $3,920 (price congestion support). The second level of support is at $3,600 (price congestion support). Below this price level, the bullish momentum would unravel, and a scenario of new relative lows would gain power. The third support level is at $3,270 (price congestion support).
The MACD in the daily range increased its opening between the lines yesterday, which is positive for the price. The slope continues to be positive, and the lines go a little further into the bullish zone of the indicator.
The DMI in the daily range shows us how the bears have started to lose faith and start a downward movement. The bulls, on the other hand, maintain the bullish level of the previous days, which indicates that they do not have much confidence in the short term either.
ETH/USD Daily Chart
ETH/USD is currently trading at the $153 price level, slightly below the $155 resistance level.
Above the current price, ETH/USD has its first resistance level at $155, a level that is critical only if Ethereum surpasses the next resistance level of $163 (SMA100). If so, ETH/USD would be supported by two major moving averages to deal with a battery of resistances at $170 (price congestion resistance), $180 (price congestion resistance), $190 (price congestion resistance) and $200 (price congestion resistance and long term bear channel stop).
Below the current price, the first level of support for ETH/USD is $142 (price congestion support and EMA50). The second level of support is at $125 (price congestion support). The third level of support is at $109 (price congestion support).
The MACD in the daily range shows an exhaustion profile. The first hour hikes are making the line’s profile improve.
The DMI in the daily range shows that the bulls are slightly improving their positions while the bears retreat a bit and do not believe that the time for declines has arrived.
XRP/USD Daily Chart
XRP/USD is currently trading at the $0.371 price level. As I mentioned in the introduction to the article, the good news from the parent company has not been enough to raise the price of the XRP.
Above the current price, the first resistance level is near the current price at $0.375 (EMA50). Above this resistance, there is a direct jump to the second resistance level at $0.412 (price congestion resistance and SMA100). The third resistance level is a series of obstacles very close together at $0.42 (SMA200), at $0.428 (price congestion resistance) and $0.444 (price congestion resistance and the ceiling of the long term downtrend channel).
Below the current price, the first support level for the XRP/USD pair is at the price level of $0.369 (price congestion support). The second support level is $0.345 (price congestion support). The third support level is $0.32 (price congestion support).
The MACD in the daily range shows a flat profile and moves slightly above the 0 levels. The data is price neutral.
The DMI in the daily range shows us how bulls do not get past an ADX line that pushes them lower each time. The bulls remain at levels similar to those of the last few days. This profile is slightly adverse for the XRP/USD.
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