Ethereum, Litecoin & Ripple’s XRP Technical Analysis – July 14th

Key support levels at play as the market remains bearish

5 Min Read
Last Updated July 23rd 2021

Ethereum

Ethereum was pretty bearish for the better part of Tuesday. By the end of the day, it had shed off over 4% of its value.

Its bearish momentum was largely a continuation of the trend that was dominant all through Monday.

The bearish momentum was so strong that by daybreak, Ethereum was trading at the 23.6% Fibonacci support at $1992.12.

However, after more than 24-hours of a selloff, this support held.  Ethereum bounced off it and gained for about 5-hours.

With bearish momentum on the rise in the broader market, bulls could not sustain momentum.

What followed was a reversal that saw Ethereum retest the 23.6% Fibonacci support at $1992.12.

Bears were so strong that Ethereum broke through this support and with high volumes.

Downside momentum was confirmed when bulls tried to push back through the 23.6% Fibonacci but failed a second time.

What followed is that Ethereum dropped all through the evening.  By the end of the day, it was close to losing the $1900 psychological resistance.

Ethereum is currently trading at $1888.71 and is down by 5.41%. It started the day with a bullish candle, an indicator of buyers trying to retake the market.

However, with bearish sentiment still dominant in the broader market, bulls lost by the second hour of the day.

This has seen it turn bearish again for the rest of the morning. By daybreak, Ethereum had tested multiple-month support at $1863.87.

It bounced off this support, but it still looks set to retest it a second time. It is indicative of the accelerating bearish momentum at the moment.

ETH/USD 1-hour chart 071421

A glance at the day ahead

In the day, the key level to watch will be the $1863.87 multi-month support. This is key support that, if broken, could mark a continuation of the bear trend.

In such a scenario, the June 25th low of $1714 would be the next key level to watch in the day.  This is a critical level, and if broken, could easily see Ethereum test prices below $1500.

However, if the $1863.87 support holds, two scenarios could play out in the day.

The first one is consolidation around it. In such a scenario, Ethereum could trade around this support for the better part of the day.

However, if the support holds and bullish sentiment rises, the next key level to watch would be the 23.6% Fibonacci resistance at $1992.12.

If this resistance is broken, it would mark a V-shaped reversal and a possible end to the bear trend.

However, if the current market trend is anything to go by, then chances are that Ethereum will either be range-bound or the bear trend will continue.

A glance at the technicals

Key support: Multi-month support at $1863.87

Litecoin

Litecoin was in a range for the better part of Tuesday. Nonetheless, it ended the day lower by about 3%.

It started the day trading along the 38.2% Fibonacci support at $132.94. By daybreak, bearish momentum had taken over, and the 38.2% Fibonacci support gave way.

Litecoin dropped sharply but failed to test the 23.6% Fibonacci support at $129.38.  This reenergized bulls and saw them push it back to the 38.2% Fibonacci, which was now intra-day resistance.

By around midday, bulls lost momentum again, and Litecoin dropped. This time, the selloff was strong enough to see it test the 23.6% Fibonacci support at $129.38.

This support proved to be quite strong, and Litecoin bounced back to and even briefly pushed through the 38.2% Fibonacci resistance.

However, with bearish momentum dominant in the broader market, Litecoin turned bearish again, around the 38.2% Fibonacci resistance.

What followed was a crash that saw it trade in the red for the better part of the evening.

Litecoin is currently trading at $125.16 and is down by 4.23%. It started the day bearish, and within the first three hours of trading, had broken through the 23.6% Fibonacci support at $129.38.

It has been trending lower from that point and is now trading at multi-month support at $123.62. It has tested this support twice in early morning trading.

LTC/USD 1-hour chart 071421

A glance at the day ahead

In the day, the key level to watch will be the multi-month support at $123.62.

 If this support is broken, it would be an indicator that bears are firmly in control.

In such a scenario, the next key level to watch would be the June 22nd low of $105.64. If this price level is broken, then Litecoin could easily test prices below $100 in the day.

However, if the $122.62 support holds, then two scenarios would be likely in the day. The first one is a range around it all through the day.

The second one is a potential bounce off this support. If this happens, then the next target would be the 23.6% Fibonacci resistance at $129.38. 

If Litecoin tests, and breaks this resistance, then there could be a possibility of a V-shaped recovery.

A glance at the technicals

Key support: Multi-month support at $129.38

Ripple’s XRP

Ripple’s XRP was bearish for most of Tuesday’s trading. By the end of the day, it was down by about 2.5%.

XRP started the day bullish and even briefly broke through the 38.2% Fibonacci resistance at $0.63232.

However, with broader market sentiment bearish, XRP quickly turned bearish and remained this way for the better part of the day.

By the end of the day, it was trading at 0.61428, on the 23.6% Fibonacci support.

XRP is currently trading at $0.5983 and is down by 5.67%.

It started Wednesday in a continuation of the up bearish trend that prevailed all through Tuesday.

It broke the 23.6% Fib support in early morning trading and has been trending lower from that point.

XRP/USD 1-hour chart 071421

A glance at the day ahead

In the day, the key level to watch will be multi-month support at $0.58506. 

If bearish sentiment sustains, and this support is broken, XRP could easily test prices below $0.50 in the day.

However, if the support holds, then XRP could consolidate around it for the day. 

If bullish sentiment rises in the broader market, then XRP could bounce off this support.

In such a scenario, the 23.6% Fib resistance at $0.61428 would come into play. If momentum is strong enough to push through it, it could mark a V-shaped recovery for XRP.

A glance at the technicals

Key support:  Multi-month support at $0.58506.

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