This is a daily technical analysis by Coindesk analyst and chartered market engineer Omkar Godbole.
There is an old saying, “One is a chance, two is a coincidence, and the third is a trend.”
Applies to Bitcoin
Right now. Cryptocurrency prices have returned to the 50-day Simple Moving Average (SMA) and provided support twice this month, bouncing the price.
Thus, the latest retest of the average shows the opportunity for the Bulls to establish a trend for 50 days of SMA to make new legs higher. Conversely, a 50-day drop in SMA support could lead to stronger sales pressure, potentially below $100,000.
At the time of press, the bear case appears to be strong due to signs of cow fatigue, as is evident from the recent shallow bounce from the SMA for 50 days. The first test averaged June 5th bounces ranging from around $100,500 to over $10,000. However, in the second test of the SMA on June 17th, prices only went from $103,000 to $109,000.
Last week’s Doji Candle also suggests fatigue for bulls that exceed $100,000.
Restoring the immediate bullish outlook requires a massive amount of movement over $110,000.
Did XRP head to Doge Way?
Payment-centric cryptocurrency XRP
It is traded at the bottom of Ikkyoun, a momentum indicator based on several moving average variants developed by Japanese journalists in the 1960s.
The crossover above and below the clouds is said to represent a bullish, bearish change in momentum.
As a dogecoin, when the asset price passes under the cloud
Earlier this month, it usually shows a bearish trend. Traders often interpret this as a signal to consider selling or shorting an asset.
XRP’s 50-day SMA is already below the 200-day SMA, confirming bearish indicators, which are what we call death crosses. Therefore, potential movement under one cloud can be costly for the bear, potentially opening doors for slides that are less than $2.
On the chart, support is $1.60, and you can see it directly at the early April lows. Coins like Doge, Ada and Link have recently fallen under their respective one-sided clouds, resulting in price losses.
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