Bitcoin halving took place on May 12. Since then, the cryptocurrency sphere is pretty busy. Altcoins such as Ethereum and Ripple have been quite volatile while some such as Tether have not been so much!
Let us take a look at where some of these Altcoins stand. We will also cover some short term trading strategies for Ripple, Ethereum.
Technical analysis of Ripple XRPUSD
XRPUSD recently recovered from its lows of 2017 levels. Since then, it bounced back strongly.
Let’s take a look at the XRPUSD daily-timeframe. Source: TradingView.com
The day’s range for XRP is $0.19645 — $0.20213. At the time of publication, Ripple traded at $0.199.
The spike in the volume and the large red candle suggest bearish momentum. Therefore, XRP will likely break lower from the trendline. In that case, investors can enter into a ‘short’ position in XRPUSD.
The perfect entry point would be close to $0.19802, with the target buy at $0.17731. Investors must make a strategy of keeping a risk-reward ratio of 1: 2.5 or higher. With a proper setup in place, this trade would likely fetch a 10% or higher profit.
Trading opportunities in Ethereum ETHUSD
Ethereum has been quite the volatile cryptocurrency. ETHUSD would likely offer an excellent trading opportunity. However, ETH is yet to reach the price point.
Ethereum is rising. However, this rise is not supported by any substantial volumes. It means that ETHUSD will decline. But before that decline takes place, ETH might rise a bit more.
If we look at the daily chart for the ETHUSD, we can see that Ethereum prices are moving in a converging funnel pattern. Once ETHUSD starts breaking out of it, Ethereum would suffer a significant decline.
Both of these trading strategies are for informative purposes. Traders should use a strict check on the risk versus reward before entering any trade.