Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 23rd July

Volumes to determine direction after a 48-hour bull rally

Last Updated July 23rd 2021
6 Min Read

Ethereum

Ethereum was pretty bullish in Thursday’s trading session. By the end of the day, it was up by about 3%.

Ethereum was on the rise all through Wednesday but had a slight correction in the last two hours of the day.

However, this correction hit strong support at the 50.0% Fibonacci and bounced off it in the first hour of Thursday trading.

This created confidence in buyers that the rally that had started 24-hours earlier was still strong.

Ethereum kept edging higher, and by mid-morning, had hit strong resistance at $1999.26 on the 61.8% Fibonacci.

With bulls struggling at this resistance, bears tried to retake control. This pushed Ethereum back to the 50.0% Fibonacci, but the pullback was quickly rejected.

This indicated strong underlying bullish momentum and saw Ethereum rally through the 61.8% Fibonacci in the early afternoon.

With a key resistance level broken, Ethereum rallied all through the afternoon with a key resistance level broken and hit a high of $2046.37 in the early evening.

However, after close to 48-hours of gains, short-term traders were starting to take profits. 

Nonetheless, buyers were the dominant force in the market, and this saw Ethereum trade in a range for the rest of the evening.

At the time of writing, Ethereum was trading at $2077.16 and was up by 4.83%. 

It started the day with some selling momentum, a continuation of the price action that started in late Thursday trading.

However, by the second hour of the day, it had found strong support at $1999.26 on the 61.8% Fibonacci.

It bounced off this support just before daybreak and has been in the green from that point on. By the time of going to press, it was making new highs with each subsequent hour. 

 ETH/USD 1-hour chart 072321

A glance at the day ahead

In the day, the key levels to watch will be the 61.8% Fibonacci support at $1999.26 and two weeks resistance at $2173.61.

If in the day bulls sustain momentum and push Ethereum higher, the key level to watch would be the two-week resistance at $2171.65.

If Ethereum tests and surpasses this price level, it would indicate that bulls are still firmly in control.

In such a scenario, price levels above $2500 would be possible in the day, or in the course of the weekend.

However, if bulls lose control, the next key level to watch would be the 61.8% Fibonacci support at $1999.26.

If sellers can push Ethereum to this level, then two scenarios can play out. The first one is consolidation around it. This is possible given that it’s Friday, and volumes usually decline as the weekend sets in.

The second scenario is where Ethereum blasts through the 61.8% Fibonacci support and with high volumes. This would be an indicator that bears are taking control heading into the weekend.

Such a bearish move will be confirmed if Ethereum pushes through the 50.0% Fibonacci support at $1945.37. Such a scenario would see Ethereum possibly test prices below $1900 in the day.

A glance at the technicals

Key resistance: Two-week resistance at $2173.61

Key support: 61.8% Fibonacci at $1999.26

Litecoin

Litecoin had a pretty bullish day on Thursday. By the end of the day, it was up by over 3%.

Litecoin started the day trading at a key resistance level at $117.44 on the 38.2% Fibonacci.  

It ranged at this price level for the better part of the morning, an indicator of market cooling after over 24-hours in the green.

However, by midday, it pushed through this resistance. This saw it continue the upside momentum that started on Wednesday.

By early evening, Litecoin had hit key resistance at $121.68 on the 50.0% Fibonacci. However, bullish momentum was not strong enough to push through this resistance. 

This saw Litecoin enter a corrective phase for the remaining part of the day.

At the time of writing, Litecoin was trading at $121.23 and was up 3.59%.

It started Friday trading bullish, a consequence of Thursday evening’s price action. Litecoin was in a correction on Thursday evening, but bears failed to push it down enough to the 38.2% Fibonacci support at $117.44.

This was an indicator that bullish sentiment was still strong and saw bulls take control in early Friday trading.

By mid-morning, it had rallied enough to test key resistance at $121.68.  However, with bears retaking control in the broader market, Litecoin had failed to push through this resistance at the time of writing.

LTC/USD 1-hour chart 072321

A glance at the day ahead

In the day, the key levels to watch will be the 50.0% Fibonacci resistance at $121.68 and the 38.2% Fibonacci support at $117.44.

If bulls sustain the momentum that has been prevalent in the last 48-hours, the 50.0% Fibonacci would come into play. If broken, then it could be a green day for Litecoin with the potential to test prices above $125 in the day.

However, if bears take control, and push Litecoin through the 38.2% Fibonacci at $117.44, then prices below $114 could be possible in the day.

On the other hand, if volumes decline in the day, then Litecoin could range between 50.0% fib resistance and 38.2% Fib support in the day.

A glance at the technicals

Key resistance: 50.0% Fibonacci at $121.68

Key support: 38.2% Fibonacci at $117.44

Ripple’s XRP

Ripple’s XRP was bullish all through Thursday. By the end of the day, it was up by over 3%.

XRP started the day trading at a key resistance level, the 38.2% Fibonacci at $0.56964. With buying volumes high, it pushed through this resistance and rallied all through the day.

By late evening, it was trading at $0.60294 on the 61.8% Fibonacci resistance.  This resistance proved to be quite strong, and XRP failed to push through it. This led to a correction in the last 4-hours of the day.

XRP is currently trading at $0.6014 and is up by 4.97%.

XRP started the day in a continuation of Thursday’s correction.  By the third hour of the day, it had found support at $0.58629 on the 50.0% Fibonacci.

With bullish sentiment still dominant in the broader market, this support held, and XRP bounced off it in early morning trading.

It rallied off this support, and at the time of writing, XRP was trading at the 61.8% Fibonacci resistance at $0.60294.

XRP/USD 1-hour chart 072321

A glance at the day ahead

In the day, the key levels to watch will be the 50.0% Fibonacci support at $0.58629 and the 61.8% Fibonacci resistance at $0.60294.

If bullish momentum rises and XRP rallies through the 61.8% Fib resistance at $0.60294, then prices above $0.62 could be possible in the day.

On the other hand, if bears manage to push XRP through the 50.0% Fib support at $0.58629, then prices below $0.56 could be possible in the day.

However, if volumes remain low in the day, XRP could range between the 61.8% Fibonacci resistance and the 50.0% Fib support.

A glance at the technicals

Key resistance:  61.8% Fibonacci at $0.60294

Key support: 50.0% Fibonacci at $0.58629

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