Ethereum, Litecoin, & Ripple’s XRP Technical Analysis -13th July

Key support levels at play as bearish pressure rises

Last Updated July 23rd 2021
5 Min Read

Ethereum

Ethereum was pretty bearish in Monday’s session. By the end of the day, it was trading at $2008, down by 3%.

Ethereum started the day with gains, an extension of the upside momentum that started on Sunday.

However, it hit resistance at $2166.47 on the 61.8% Fibonacci within the first hour of the day.

Without momentum in the broader market, Ethereum turned bearish.  It traded lower but, within three hours of the day, found some support at $2127.72. This a low it had established in late Sunday trading before continuing the upside momentum.

Ethereum bounced off this support, and by daybreak, had retested the 61.8% Fibonacci resistance at $2166.47.

Without much support from the broader market, Ethereum formed a double top at this resistance.

This is a strong bearish signal and saw Ethereum drop for the better part of the day. By early evening, it found some support at $2089.30.

However, this was pretty weak and was quickly broken too. By the end of the day, Ethereum had found some support at $2017.92. This is two-week support, and it held for the day.

At the time of writing, Ethereum was trading at $1993.40 and down by 7.08%. It had already broken through the $2017.92 support, sending a strong bearish signal for the day.

ETH/USD 1-hour chart 071321

A glance at the day ahead

Ethereum looks pretty bearish for the day ahead. With a clear break through the $2017.92 support, Ethereum could be in the red all through the day.

In such a scenario, it could easily test prices below $1800 in the day. The next major support could be at around $1706.75.  This is Ethereum’s monthly low, one that is well within reach under current circumstances.

However, if there is a sharp increase in buying momentum and the price pushes back through the $2017.92 support, it would indicate that the support is strong.

In such a setup, two scenarios could play out. The first one is that Ethereum could range around $2017.92 all through the day.

The second scenario is where Ethereum rallies from this support in V-shaped price recovery.

In such a situation, the next key level to watch would the 61.8% Fibonacci support at $2166.47.

If it tests and surpasses this resistance, it could easily mark the beginning of a bull run that could last for weeks.

However, the most likely scenario is one where the bearish trend continues all through the day or enters a range around the $2017.92 support.

A glance at the technicals

Key support:  Multiple week support at $2017.92.

Litecoin

Litecoin had a pretty mixed day on Monday. It started the day bullish but ended it bearish after two failed attempts at key resistance.

Litecoin started the day bullish, an extension of the gains that it had made on Sunday. However, the long bullish candle in the first hour of the day failed to push Litecoin to the 50.0% Fibonacci at $136.94.

This saw it drop and retest key support at $134.38 on the 38.2% Fibonacci. This support held, and Litecoin bounced off it by the third hour of the day.

It kept gaining, and by early morning, had pushed through key resistance at $136.94.  This added to the upside momentum, but it was not strong enough to push Litecoin through the 61.8% Fibonacci resistance at $139.51.

This saw it retest the 50.0% Fibonacci support, and by early evening, it had bounced off this level. It made another go at the 61.8% Fibonacci resistance but failed a second time.

What followed is that Litecoin formed a double top at this resistance, which is a strong bearish signal.

Litecoin then turned bearish from that point on and was red for the rest of the day.

Litecoin is currently trading at $133.52 and is down by 1.76%. It started the day in a range after a huge selloff in late Monday trading.

However, by daybreak, bearish momentum increased in the broader market. What followed was a huge Litecoin selloff that saw it break the 23.6% Fibonacci support at $131.15.

It was trading below this support at the time of going to press.

LTC/USD 1-hour chart 071321

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci at $134.38.

In the event that the broader market remains bearish, Litecoin could trend lower in the day. In such a scenario, the next support could be at $128.80. This is a price level where it has found some support in the last 3-days.

If this support is broken, then prices below $126 could be possible in the day. It could also mark the continuation of the bear trend for days to come.

However, if Litecoin gains upside momentum and pushes through the 23.6% Fibonacci, two scenarios could play out.

The first one is a range-bound day around this price level. The second one is a V-shaped recovery. 

A V-shaped recovery would be possible if bulls are strong enough to push through the 38.2% Fibonacci resistance at $134.38 and the 50.0% Fibonacci resistance at $136.94.

A glance at the technicals

Key support: 23.6% Fibonacci at $131.15

Ripple’s XRP

Ripple’s XRP had a mixed day on Monday but closed in the red. It started the day in the green, and by daybreak, had pushed through the 50.0% Fibonacci resistance at $0.65044.

However, with the broader market turning bearish, XRP could not sustain momentum through this resistance. What followed was a crash that lasted all through the day.

By the end of the day, it had found support at $0.61949 on the 23.6% Fibonacci.

XRP is currently trading at $0.6258 and is down by 3.69%. It started the day trading at the 23.6% Fib support and has held above it all through the morning.

At the time of writing, it had bounced off this support and pushed through the 38.2% Fibonacci resistance at $0.63659.

XRP/USD 1-hour chart 071321

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci support at $0.61949. If it holds and upside momentum rises, then XRP could see a V-shaped recovery in the day.

This will be confirmed if XRP pushes through the 50.0% Fibonacci and with high volumes.

However, if bulls lose momentum and the 38.2% Fib resistance holds, two scenarios could play out.

The first is that XRP could range between the 38.2% Fib resistance at $0.63659 and the 23.6% Fib support at $0.61949.

The second scenario is if XRP breaks through the 23.6% Fib support at $0.61949. Such a scenario would be confirmation that bears are firmly in control.

In such a case, XRP could easily test prices below $0.60 within the day.

A glance at the technicals

Key support: 23.6% Fibonacci at $0.61949

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.