The past few weeks were especially difficult for Ripple investors. XRPUSD fell below several crucial support levels. At a time when most other Altcoins recovered from a drop, Ripple kept slipping below.
Bitcoin Cash, or BCHUSD, on the other hand, moved in a range-bound fashion the past few weeks. It is now at a crucial technical level. If the Bears get hold of BCHUSD, it could drop by more than 8% in a short time.
XRPUSD forms a brilliant Bullish breakout pattern
Published on: TradingView.com
The third-largest cryptocurrency might have regained its glamour. The four-hour timeframe shows that XRPUSD formed an inverted head and shoulders pattern.
The ‘inverted Head and Shoulders‘ is a reliable Bullish formation. We can see in the four-hour chart that as soon as the baseline, was broken, there was an immediate jump in XRPUSD. The green breakout candle immediately posted a 3% gain for Ripple.
Intraday trading strategy for XRPUSD:
- Buy at $0.19320, for the target of $0.20.
- Keep a trailing stop-loss
The above trading strategy for XRPUSD could fetch a 3.5% – 4% gain with minimal risk.
BCHUSD forms a Death Cross
The four-hour timeframe for BCHUSD shows that the 200-period Simple Moving Average acted as a harsh resistance level for a long time.
Now, Bitcoin Cash is at a crucial point where the 50-period SMA is crossing down the 200-period SMA. It is known as the Death Cross formation.
The Death Cross is a Bearish pattern which could cause a disastrous fall in BCHUSD.
The next support level is at $225, while the resistances are at $245 and $260.
However, the Death Cross needs a confirmation pattern to take effect. The traded volume needs to be higher than the average. Right now, the traded volumes for Bitcoin Cash is lower than the average. Investors should, however, tread carefully on BCHUSD now.