The journey of the various cryptocurrencies over the past few weeks has been nothing less of a roller-coaster ride. Greedy and novice investors who tried to ride the tide or catch falling knives got badly hurt.
Bitcoin’s bull trap came crashing down last Thursday. Perhaps it is time to look past the BTCUSD, at least for the time being and look at the risk-reward ratio of the other cryptocurrencies such as:
- Ethereum (ETHUSD)
- Litecoin (LTCUSD)
- Ripple (XRPUSD)
Trading opportunities in Ethereum (ETHUSD)
As of writing this article, Ethereum (ETHUSD) was trading at $159.39. The day’s range is between $158.01 — $161.53.
- The hourly chart showed a strong resistance level at $163.59.
- Now, as the price retested this level and dropped below, it gave rise to an excellent opportunity for entering a ‘short‘ position on the Ethereum.
- The Target buy zones could be at $157.9, $153.3, and $148.2.
It is important to note that these are trades for the immediate short term. Entering the position at the correct price point and booking profits would be essential.
Exciting trading opportunities in Litecoin (LTCUSD)
The day’s range for the Litecoin lies between $42.185 — $43.214.
- The Litecoin has several reliable Technical indicators pointing to a downward movement.
- The volumes are low, and the body of the candles are small. Though it has currently posted some gains, the MACD downward crossover could take place any time soon, as and when the selling begins.
- The Bollinger Bands show that the prices are currently at the upper end of the band. However, without any substantial support, the prices would likely drop.
Ripple trading strategies (XRPUSD)
The reason Ripple is mentioned in this article and is an important cryptocurrency is that:
- It comes at a fraction of cost to the Bitcoin.
- Thus the exposure reduces exponentially, whereas the reward remains almost the same. Therefore, the risk-reward ratio is significantly higher.
As of writing this article, Ripple traded at $ 0.19065.
Now Ripple gave an opportunity of an excellent ‘long’ position.
- There was a crucial resistance level at 0.17750. It had retested this level a couple of times and fell back.
- However, this time Ripple (XRPUSD) broke out of this Resistance and that too with good volumes.
- This is the point where a prying and attentive trader would have entered a ‘long’ position.
