Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 9th July

Bears still in control as intra-day support levels give way

5 Min Read
Last Updated July 23rd 2021

Ethereum

Ethereum was bearish all through Thursday’s session. By the end of the day, it was down by 9% to trade $2137.48.

Ethereum started the day bearish. This followed a clear bearish signal in late Wednesday trading.

On Wednesday evening, Ethereum hit multi-month resistance at $2408.35. It then started a slow retrace from this level, and by the end of the day, bearish momentum was gaining traction.

In early Thursday trading, the bearish momentum was accelerating, and by dawn, Ethereum was trading on the 23.6% Fibonacci support at $2267.16.

This support held for about two hours, but with overall market momentum bearish, it broke. The selloff then accelerated, and by mid-morning, it was trading on the 38.2% Fibonacci support.

This, too, failed, and Ethereum kept trending lower. However, by the latter half of the day, the extended selloff saw it get into oversold territory. The selloff ease up, and Ethereum consolidated up until the end of the day.

At the time of writing, Ethereum was trading $2132.62 and was down by 4.79%.

Ethereum started Friday with a clear break from the range that it had established in late Friday trading.

This was a clear indicator that bears are still in control. What followed was a push through the 50.0% Fibonacci support, and with high volumes.

However, by daybreak, bearish sentiment had started to ease up. This saw bulls push back through the 50.0% Fibonacci.

This support is currently at play and will determine the direction that Ethereum will take in the day.

ETH/USD 1-hour chart 070921

A glance at the day ahead

In the day, the key level to watch is the 50.0% Fibonacci support at $2109.84.

If the bearish sentiment that started on Thursday increases, then the 50.0% Fibonacci support could give way.

In such a scenario, the next key level to watch would be the 61.8% Fibonacci support at $2039.35.

If this support fails, then Ethereum could be bearish all through the weekend. In such a scenario, prices below $1900 could be a reality.

On the other hand, if the 50.0% Fibonacci support holds, then it would be an indicator that after a 24-hour sell-off, Ethereum is oversold, and buyers are entering the market.

If the 50.0% Fibonacci support holds, and the broader market turns green, then Ethereum could test the 38.2% Fibonacci at $2180.50 in the day.

If it pushes through this level, it would indicate that buying momentum is on the rise. It would also mark the completion of a V-shaped recovery, and the potential for Ethereum to test prices above $2200 either today or over the weekend.

On the other hand, if the 50.0% Fibonacci support holds, but there is little upside momentum in the broader market, then Ethereum could trade in a range for the day.

In such a scenario, it could consolidate between the 50.0% Fibonacci support at $2109.84 and the 38.2% Fibonacci resistance at $2180.50.

Going by how the market is trading at the moment, the most likely scenarios are either a range-bound day or a continuation of the bearish trend that started in Thursday’s trading session.

A glance at the technicals

Key resistance: 50.0% Fib at $2109.84

Key support: 61.8% Fib at $2039.35

Litecoin

Litecoin was in the red all through Thursday and closed the day lower by about 9%.

It started the day bearish after it broke through the 61.8% Fibonacci support at $140.34 in late Wednesday trading.

These losses extended into Thursday and quickly broke through the 50.0% Fibonacci support at $137.63.

By dawn, it had broken the 38.2% Fibonacci support at $134.86 and kept trending lower.

The selloff was so strong that by mid-morning, it had pushed through the 23.6% Fibonacci.

However, after several hours of a selloff, bears lost momentum after breaking the 23.6% Fibonacci.  It was an indicator that Litecoin was getting into oversold territory.

This saw bulls take control for the rest of the day. By the end of day Thursday, it had pushed back through the 23.6% Fibonacci.

At the time of going to press, Litecoin was trading at $131.04 and was down by 1.85%.

Litecoin started Friday above the 23.6% Fibonacci, an extension of Thursday’s pullback.

However, with bearish sentiment engulfing the broader market, Litecoin quickly turned bearish again.

Within the first three hours of Friday morning trading, it had broken through the 23.6% Fibonacci support with high volumes.

The selloff was so heavy that by dawn, it had tested multiple-month support at $126.94.  However, after such a heavy selloff, Litecoin quickly got oversold by daybreak.

This saw buyers start getting into the market and push the price rise. Litecoin had tested the 23.6% Fibonacci at the time of writing, which was now resistance at $131.47.  

LTC/USD 1-hour chart 070921

 A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci resistance at $131.47.

If bulls push Litecoin through this resistance, then the next key level to watch would be the 38.2% Fibonacci at $134.86.

If this is broken, it could mark the completion of a V-shaped recovery for Litecoin.

On the other hand, if bulls fail to push Litecoin through the 23.6% Fibonacci resistance, then it could mark the continuation of Thursday’s selloff.

However, if downside momentum is not that strong, Litecoin could trade in a range between the 23.6% Fibonacci resistance at $134.86 and multi-month support at $125.94.

A glance at the technicals

Key resistance: 23.6% Fib at $131.47

Key support: Multi-month support at $125.94

Ripple’s XRP

Ripple’s XRP was bearish all through Thursday. By the end of the day, it was down by 8%.

XRP started Thursday trading with a clear break through the 50.0% Fibonacci support at $0.66131.

It then traded bearish all through the day and broke through two key support levels. These are the 38.2% Fibonacci support at $0.64481 and the 23.6% Fibonacci at $0.62443.

By the end of Thursday, XRP was oversold and consolidated around the 23.6% Fibonacci support.

XRP is currently trading at $0.6158 and is down by 0.96%. 

It broke through the 23.6% Fibonacci support at $0.62443 in the first hour of the day. The selloff accelerated, and by daybreak, XRP had tested multiple months support at $0.59143.

However, this support held, and XRP bounced off it and retested the 23.6% Fib (Now resistance) by daybreak. 

Without much momentum from the broader market, this resistance held, and XRP is now trending lower.

XRP/USD 1-hour chart 070921

A glance at the day ahead

In the day, the key levels to watch will be the 23.6% Fib resistance at $0.62443 and the multi-month support at $0.59143. 

If bearish sentiment increases and XRP pushes through the $0.59143 support, then prices below $0.50 could be possible in the day.

On the other hand, if bullish sentiment increases and XRP pushes through the 23.6% Fib resistance, the next target would be the 38.2% Fibonacci resistance at $0.64481.

If this is broken, it could be a bullish day, and possibly the weekend, for XRP.

However, if there is little momentum in the broader market, XRP could trade in a range between the 23.6% Fib resistance and multi-month support at $0.59143.

A glance at the technicals

Key resistance: 23.6% Fib at $0.62443

Key support: Multi-month support at $0.59143

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