BTCUSD and XRPUSD Technical Analysis – 24th MAY 2022

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BTCUSD: Triple-Top Pattern Below $30,775

Bitcoin was not able to sustain its bullish momentum this week, and after touching a high of 30,652 on 23rd May, started to decline heavily against the US dollar; it touched a low of 28,860 today in the Asian trading session.

The drop that we saw continues, and now the prices have entered a consolidation channel above the $29,000 handle in the European trading session.

If we see some buying at these levels, the prices will continue to remain above them in the short-term range. But in the medium-term range, we are expecting a further drop due to weak global demand cues.

We can clearly see a triple-top pattern below the $30б775 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Both the STOCH and STOCHRSI are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 40 indicating a WEAK demand for bitcoin at the current market levels.

Bitcoin is now moving below its 100 and 200 hourly simple MAs.

Most of the major technical indicators are giving a SELL signal, which means that in the immediate short term, we are expecting targets of 28,000 and 27,500.

The average true range is indicating LESS market volatility with a mild bearish momentum.

  • Bitcoin: bearish reversal seen below $30,775
  • The Williams percent range is indicating an OVERBOUGHT level
  • The price is now trading just above its pivot level of $29,229
  • All of the MAs are giving a STRONG SELL market signal

Bitcoin: Bearish Reversal Seen Below $30,775

Bitcoin continues to move in a consolidation channel above the $29,000 handle in the European trading session today. We can see the formation of a demand zone above it, but the global risk scenarios may enable further decline in the prices this week.

The immediate short-term outlook for bitcoin is mildly bearish; the medium-term outlook has turned neutral; and the long-term outlook remains neutral under present market conditions.

Bitcoin continues to consolidate above its important support level of $29,000, and with increasing demand zone formation the immediate target is $30,500.

The price of BTCUSD is now facing its classic support level of 28,819 and Fibonacci support level of 29,135, after which the path towards 28,000 will get cleared.

In the last 24hrs, BTCUSD has decreased by 3.97% with a price change of 1,210$, and has a 24hr trading volume of USD 31.034 billion. We can see an Increase of 1.58% in the trading volume as compared to yesterday, which appears to be normal.

The Week Ahead

The prices of bitcoin are moving in a mildly bearish momentum, and the immediate targets are $28,000 and $27,500.

The daily RSI is printing at 37 which means that the medium range demand continues to be weak.

We are now expecting a range-bound movement between $28,000 and $32,000 next week.

The price of BTCUSD will need to remain above the important support level of $29,000 this week.

The weekly outlook is projected at $31,500 with a consolidation zone of $30,000.

Technical Indicators:

The moving averages convergence divergence (12,26): at -161 indicating a SELL

The average directional change (14-day): at 34.90 indicating a NEUTRAL level

The rate of price change: at -0.006 indicating a SELL

The commodity channel index (14-day): at 42.96 indicating a NEUTRAL level

XRPUSD: Bearish Engulfing Pattern Below 0.4300

Ripple was unable to sustain its bullish momentum last week, and after touching a high of 0.4284 on 23rd May started to decline touching a low of 0.3999 today in the early Asian trading session.

We can see the formation of a descending triangle pattern, which is expected to push its price below the level of 0.4000 this week.

We can clearly see a bearish engulfing pattern below the 0.4300 handle which signifies the end of an uptrend and a shift towards a downtrend.

The short-term outlook for Ripple has turned mildly bearish; the medium-term outlook is neutral; and the long-term outlook is neutral under present market conditions.

The relative strength index is at 39 which signifies a WEAK demand for Ripple at the current market prices, and the continuation of the downfall.

All of the moving averages are giving a STRONG SELL signal at the current market level of 0.4052.

Ripple is now trading below its pivot level of 0.4069, and is now facing its classic support level of 0.3990 and Fibonacci support levels of 0.4048, after which the path towards 0.3800 will get cleared.

Most of the major technical indicators are giving a STRONG SELL signal.

  • Ripple: bearish reversal seen below 0.4300
  • The average directional change is indicating a NEUTRAL level
  • The average true range indicates LESSER market volatility
  • The daily RSI is below 50 at 33 indicating BEARISH trends

Ripple: Bearish Reversal Seen Below 0.4300

After declining below the handle of 0.4000, Ripple is moving into a consolidation channel above the 0.4000 levels in the European trading session today.

We can see weak global demand cues from the daily RSI levels and are now looking at the potential targets of 0.3800 and 0.3500 this week.

We can see a recovery in the levels of Ripple and this continues to hold its prices above the 0.4000 levels.

We can see that XRP touched a low of 0.4011 in the Asian trading session and an intraday high of 0.4131 in the European trading session today.

The price of XRPUSD has decreased by 4.45% with a price change of $0.0189 in the past 24hrs, and has a trading volume of 1.470 billion USD.

We can see an increase of 42.83% in the trading volume of Ripple as compared to yesterday, which is due to the heavy selling seen across the global crypto markets.

This Week Ahead

The price of XRPUSD is now moving into a consolidation channel above the 0.4000 handle, and the next visible targets are 0.3900 and 0.3800.

Ripple is now entering a bearish zone formation, and this is expected to continue next week. Also next week, Ripple is expected to enter into a consolidation channel above the 0.3800 handle.

The weekly outlook for Ripple is projected at 0.3750 with a consolidation zone of 0.3800

Technical Indicators:

The Stoch (9,6): at 40.07 indicating a SELL

The moving averages convergence divergence (12,26): at -0.059 indicating a SELL

Bull/Bear power (13 days): at -0.0568 indicating a SELL

The rate of price change: at -21.09 indicating a SELL

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