The cryptocurrency market has been in limbo since the morning of Wednesday 20 following the announcement of the successful hacking attack on South Korea-based Bithumb exchange. Many cryptocurrency enthusiasts feared that the prices will tumble. On the contrary, the market has remained virtually unaffected and I would say that the cryptos have survived the attack. Bithumb moved swiftly to halt all deposits and withdrawals until it is sure that security has been restored. The exchange has also taken precaution by putting its remaining assets in cold storage.
Moving on to the analysis, EOS price has remained range-bound for 5 days now. The 5th cryptocurrency is locked within the confines of a ranging channel with the upper limit at $10.79 and a supported at $10.13. Attempts to retrace above the upper limit have been thwarted by the rising selling pressure, besides the support at $10.6 failed to hold during the declines in the Asian trading hours on Wednesday.
EOS price descended to trade marginally above $10.20, however, there is a bullish trend in progress on the chart that has broken above several resistance levels at $10.40, the 50 SMA and 100 SMA on the 30-minutes timeframe chart. The immediate resistance now lies at $10.60, but the buyers are psychologically eying the upper limit of the ranging channel.
The moving averages gap is narrowing to show that the Bulls have returned. Similarly, the stochastic is moving upwards and approaching the overbought levels at the 70 mark. The short-term support is at $10.20 and will continue providing support, but a stronger support is seen at $10.00.
Litecoin (LTC) Price Analysis
Litecoin price, like EOS, is embracing a bullish momentum. The support provided by the 61.8% Fib retracement level with last swing high of $107 and a low of $89.2. The buyers are looking forward to battling the critical resistance at $100.00, although it is trading at $98.00 at the time of writing. Litecoin price formed an upper supply zone at $102 and if the bullish trend breaks above this zone, LTC/USD could approach the next resistance target at $110.
The 50 SMA has crossed above the 100 SMA to signaling more buyers to enter. Moreover, the stochastic on the 1-hour chart is sending more bullish signals to the buyers. Litecoin price has a couple of support areas on the flipside at $92.5 and $89.2 respectively.
Stellar (XLM) Price Analysis
Stellar price, despite being locked within a falling wedge pattern for over two weeks now, is correcting higher. The digital asset movements have also been restricted in a short-term ranging channel with the upper limit at $0.24 and the lower limit at $0.21. The price is currently exchanging hands at $0.23, and a bullish trend is forming on the chart.
Technical indicators are, however, sending conflicting messages. The moving averages on the 4-hour chart are showing that selling entries will continue in the medium term, while the stochastic has recovered from the red and is at 38%, besides it shows bullish signals. The traders should be patient or take short trades until a clear bullish trend is determined.
XLM/USD must clear the resistance at $0.24, besides a break above the bearish trendline will pave the way for more upside correction towards the supply area at $0.29. On the downside, $0.220 is offering immediate support, but other support areas include $0.21 and $0.200.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.