Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 22nd July

Key resistance levels at play as bullish momentum rises

5 Min Read
Last Updated July 23rd 2021

Ethereum

Ethereum was bullish on Wednesday, and by the end of the day, was up by 11%. 

It started the day bullish, a continuation of the momentum that started in late Tuesday trading.

In the first three hours of the day, bears tried to take control but failed as bullish momentum started rising in the broader market.

By daybreak, Ethereum pushed through the 23.6% Fibonacci at $1823.85, and with high volumes.

This energized bulls further, and by midday, Ethereum crossed through the 38.2% Fibonacci resistance at $1890.42.

By early evening, Ethereum’s upside momentum was so high that it pushed through two key resistance levels, to hit a high of $2029.93.

However, at this point, short-term traders were starting to take profits. This led to a sharp drop in Ethereum’s price.

With overall momentum largely bullish, Ethereum found support at $1944.31 on the 50.0% Fibonacci by the last hour of the day.

At the time of writing, Ethereum was up by 6.45% to trade at $1977.33.

It started the day trading at the 50.0% Fibonacci support that was established in late Wednesday trading.

With bullish momentum in the market on the rise, Ethereum bounced off this support within the first two hours of the day.

It kept inching higher, and by daybreak, had retested the 61.8% Fibonacci resistance at $1998.2.

However, unlike Wednesday, overall market momentum has slowed down today. This has seen the 61.8% Fibonacci resistance hold.

Ethereum is now trading in a range between the 61.8% Fibonacci resistance at $1998.20, and the 50.0% Fibonacci support at $1994.31.

ETH/USD 1-hour chart 72221

A glance at the day ahead

In the day, the key levels to watch will be the 61.8% Fibonacci resistance at $1998.20 and the 50.0% Fibonacci support at $1994.31. 

If bullish sentiment rises in the broader market in the day, the key level to watch would be the 61.8% Fibonacci resistance at $1998.20.

If this resistance is broken, then it would be an indicator that bulls are firmly in control. In such a scenario, the next level to watch would be Wednesday’s high of $2029.93.

If this is broken, then Ethereum could easily test prices above $2100 within the day. It could also be a pointer to a potentially bullish weekend ahead.

On the other hand, if volumes are subdued in the day, Ethereum could be range-bound.

In such a scenario, it could trade between the 50.0% Fibonacci support at $1944.31 and the 61.8% Fibonacci resistance at $1998.20. 

However, if bearish momentum rises in the broader market and Ethereum breaks the 50.0% Fibonacci support at $1944.31, it could be a red day.

In such a situation, the next level to watch would be the 38.2% Fibonacci at $1890.42. Breaching this support would be an indicator that the bullish structure that formed yesterday is broken. It would also be a precursor to a potentially bearish weekend.

A glance at the technicals

Key resistance: 61.8% Fibonacci at $1998.20

Key support: 50.0% Fibonacci at $1944.31

Litecoin

Litecoin was pretty bullish in Wednesday’s trading session.  By the end of the day, it was up by over 9%.

Litecoin started Wednesday’s trading bearish and was in the red for the first four hours of the day.

However, with bullish sentiment rising in the broader market, bears could not push Litecoin low enough to retest multiple-month support at $103.72.

This energized bulls, and by daybreak, they were firmly in control. The momentum was so strong that by noon, Litecoin had pushed through the 23.6% Fib resistance at $112.20.

It rallied all through the day, and by early evening had hit resistance at $117.44 on the 38.2% Fibonacci.

However, by this time, upside momentum had eased up as day traders started to take profits. What followed is that Litecoin entered a range around the 38.2% Fibonacci for the rest of the evening.

Litecoin is currently trading at $117.33 and is up by 5.10%. It started the day with yesterday’s bullish momentum but with low volumes.

This has seen it trade along the 38.2% Fibonacci resistance at $117.44 all through the morning. It has made several attempts at this resistance but is yet to push through it.

LTC/USD 1-hour chart 72221

A glance at the day ahead

In the day, the key levels to watch will be the 38.2% Fibonacci resistance at $117.44 and the 23.6% Fibonacci support at $112.20.

If buying volumes increase and Litecoin pushes through the 38.2% Fibonacci resistance, it would indicate that bulls are still in control.

Bullish control would be confirmed if Litecoin pushes through the 50.0% Fibonacci resistance at $121.68.

However, if volumes remain low, Litecoin could range all through the day. In such a scenario, it could trade between the 38.2% Fib resistance at $117.44 and the 23.6% Fib support at $112.20.

On the other hand, if bears retake control and the 23.6% Fib support is broken, Litecoin could be red all day.

A glance at the technicals

Key resistance: 38.2% Fibonacci at $117.4

Key support: 23.6% Fibonacci at $112.20

Ripple’s XRP

Ripple’s XRP was bullish all through Wednesday.  It started the day bearish, but within the first three hours of the day, turned bullish.

With bullish momentum rising in the broader market, XRP rallied through the day. It had pushed through two key resistance levels by early evening, the 23.6% Fib at $0.54940 and the 38.2% Fib at $0.56997.

However, by early evening, momentum had eased up and was trading at $0.56997. It oscillated around this price level until the end of the day.

At the time of writing, XRP was trading at $0.5887 and was up by 7.90%.

 It started the day trading around the 38.2% Fib resistance, but by the time of going to press, XRP had pushed through it. It had already tested the 50.0% Fibonacci resistance at $0.58662.

XRP/USD 1-hour chart 72221

A glance at the day ahead

In the day, the key levels to watch will be the 50.0% Fib resistance at $0.58662 and the 38.2% Fib support at $0.56997.

If bullish momentum rises in the day and XRP pushes through the 50.0% Fibonacci resistance, the next key level to watch would be the 61.8% Fib at $0.60327. Pushing this level would mark a strongly bullish day for XRP.

On the other hand, if volumes decline and XRP fails to push through the 50.0% Fib, two scenarios could play out.

The first one is a range-bound day, where XRP trades between the 38.2% Fib support at $0.56997 and the 50.0% Fib resistance at $0.58662.

The other scenario is where bears take over and push XRP through the 38.2% Fibonacci support at $0.56997.

In such a scenario, the next key support level to watch would be the 23.6% Fib at $0.54940. If this is broken, then XRP could be bearish all through the weekend.

A glance at the technicals

Key resistance: 50.0% Fibonacci at $0.58662

Key support: 38.2% Fibonacci at $0.56997

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