Ethereum, Litecoin, Ripple’s XRP Weekly Technical Analysis – 12th July

Market in a consolidation phase as volumes remain low

5 Min Read
Last Updated July 23rd 2021

Ethereum

Ethereum, like the rest of the market, was in the red all through last week. By the end of the week, it was down by about 4%.

Ethereum started the week bearish after the previous week’s bullish rally hit strong resistance at $2387.02 on the 50.0% Fibonacci resistance.

Without much support from the broader market, Ethereum turned bearish from this point. It traded in the red all through Monday, setting the momentum for the rest of the week.

However, Monday’s bearish candle failed to clear out all of the gains Ethereum had made on Sunday the previous week.

This created the impression that bulls could still be in control. The result was that buyers took over for the better part of Tuesday.

The upside momentum continued to Wednesday when Ethereum retested the 50.0% Fibonacci resistance.

Without much support from the broader market, this resistance held for a second time. What followed was a sharp drop in price on Thursday.

The bearish correction on Thursday was so sharp that it erased four days of gains. This also eliminated any hopes of a bullish resurgence in the weekend.

Ethereum was bearish all through Friday, and this extended to yesterday, albeit with low volumes.

It is currently trading at $2156.94 and is up by 3.47%. It has started the week in the green, albeit with low volumes. It is an indicator that the market is yet to find direction.

ETH/USD 1-day chart 071221

A glance at the week ahead

In the day, the key level to watch will be the 61.8% Fibonacci support at $1921.19. Despite the heavy selloff last week, Ethereum failed to test this support.

If bulls hold the price above this support in the week, it could be an indicator that the bearish trend that started in May could be coming to an end.

In such a situation, volumes will play a huge role in Ethereum’s direction in the week. If bulls take control but don’t have strong volumes, then the 50.0% Fibonacci resistance at $2387.02 could hold.

This could lead to a situation where Ethereum consolidates between the 50.0% Fibonacci resistance at $2387.03, and support at $1921.19 on the 61.8% Fibonacci.

However, if bulls remain in control and volumes rise, then there could be potential to break through the 50.0% Fibonacci resistance at $2387.02.

This could also mark a reversal that brings the 38.2% Fibonacci resistance at $2852.85 into play. If this resistance too is broken with high volumes, Ethereum would have broken the bearish structure and would be on its way back to all-time highs.

On the other hand, if bears take control, and continue the bearish momentum that started last week, then the 61.8% Fibonacci support at $1921.19 would come into play.

In such a scenario, volumes would still come into play. If bearish sentiment increases with high volumes and the 61.8% Fibonacci support breaks, it would confirm a continuation of the bearish sentiment that has gripped Ethereum for two months.

However, if volumes are low and the 61.8% Fibonacci holds, it could be a range-bound week for Ethereum.

A glance at the technicals

Key resistance: 50.0% Fibonacci at $2387.02

Key support: 61.8% Fibonacci at $1921.19

Litecoin

Litecoin was in a range for the better part of last week. By the end of the week, it was down by 5.3%.

Litecoin started the week bearish after bulls failed to retest the previous week’s highs of $150.22.

However, volumes were low, and this saw bulls try and re-take control by Wednesday. Without much support from the broader market, the attempt by bulls to retake control was short-lived.

Bearish sentiment that had started earlier in the week continued and extended into the weekend.

Litecoin is currently trading at $135.55 and is up by 1.49%. It has started the week in gains, albeit with very low volumes.

LTC/USD 1-day chart 071221

A glance at the week ahead

In the week, volumes will play a huge role in the direction that Litecoin takes. If they are low, then Litecoin could continue trading in a range for the second week in a row.

On the other hand, if bullish volumes increase in the week, then $150.22 (the high of 29th June) would be the price to watch.

If it is broken, then Litecoin could be in the green in the week. In such a scenario, the next key resistance to watch would be the 61.8% Fibonacci at $187.65.

If bearish sentiment rises, the next key level to watch would be $105.64. This is a two-week low, and if broken, could see Litecoin test prices below $100 in the day.

A glance at the technicals

Key resistance: 14-day high of $150.22

Key support: 14-day low of $105.64

Ripple’s XRP

Ripple’s XRP, like the rest of the market, was bearish all through last week, albeit with low volumes. By the end of the week, it was down by 4.27%.

XRP started the week bearish, and by the end of the day, Monday had eaten into the gains it had made the previous weekend. 

With bearish sentiment engulfing the broader market, the bearish momentum that started on Monday continued throughout the week.

XRP is currently trading at $0.6466 and is up by 4.10%. It started the new week in the green, albeit with low volumes.

XRP/USD 1-day chart 071221

A glance at the week ahead

The direction XRP takes will most likely be determined by volumes and broader market sentiment in the week.

If the current upside momentum continues, and volumes rise, the next key level to watch would be last week’s high of $0.73124.

If it pushes through this high, then XRP could be in the green all week. In such a scenario, the next key resistance to watch would be 61.8% Fibonacci at $0.85592.

On the other hand, if bears continue last week’s momentum and bearish volumes increase, the next key level to watch would be a two-week low of $0.51052.

If this is broken with high volumes, then XRP could test new lows in the week. It would also mark a continuation of the bearish trend that has characterized the market for the past two weeks.

However, if volumes remain low, then XRP could be range-bound all through the week. It would also be confirmation that it is now in a consolidation phase that could last for weeks.

A glance at the technicals

Key resistance: 7-day high of $0.73124

Key support: 14-day low of $0.85592

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