- Grayscale’s legal victory against the SEC triggers a notable market surge, impacting coins like BCH and XRP.
- Post-victory, BCH breaks resistance, holds support, and presents bullish indicators like pattern breakouts.
- XRP faces enduring resistance but displays positive traits such as an ascending triangle, highlighting a delicate equilibrium.
Bitcoin Cash (BCH):
Yesterday, due to Grayscale winning a case against the Securities and Exchange Commission (SEC), the crypto market witnessed a surge in coin prices. Fundamentally, this was significant news that spurred the bulls into action, causing the price of Bitcoin to reach $28,000. During this time, an interesting pattern was exhibited by Bitcoin Cash. It broke through its resistance at $208 and closed the day at $225. In the prior crypto market downturn, Bitcoin Cash touched its 200 EMA and executed a successful reversal after retesting it. Notably, yesterday, Bitcoin Cash broke out of its Bull Flag pattern. According to the pattern, the anticipated target is around $400-$410. The Relative Strength Index stands above 50, and the Moving Average Convergence Divergence also displays a bullish crossover. Currently, Bitcoin Cash is being traded at $215 and is in the process of retesting the Bullish Flag trendline. An essential support level for Bitcoin Cash lies at $210. The 200 EMA serves as robust support, and it is imperative for Bitcoin Cash to maintain a close above this level.
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Bitcoin Cash demonstrated its support at the 0.618 FIB level, approximately $182. At present, it is trading above the 0.5 FIB level. Sentiments are decidedly bullish for Bitcoin Cash, yet it remains crucial for the cryptocurrency to uphold its $180 support level.
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Ripple (XRP):
XRP is currently trading at $0.529, and it is currently facing resistance at $0.548. This particular resistance had persisted for over a year. After its breakout following the legal victory against the SEC, it once again became trapped beneath this resistance. XRP is also holding onto its important trendline support. Additionally, XRP is forming an ascending triangle at the daily level, which increases the likelihood of an upside breakout. Should the ascending triangle pattern resolve upwards, the projected target for XRP is $0.68.
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In the recent market downturn, XRP touched the 0.786 FIB level and subsequently retraced to the upside. At present, XRP is hovering around the 200 daily EMA. It is imperative for XRP to exhibit some upward movement, as continually tapping the 200 EMA might result in a breakdown, potentially leading to a price drop for XRP.
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Conclusion:
The recent developments in the cryptocurrency market have brought about significant shifts in both BCH and XRP. Grayscale’s legal victory against the SEC triggered a notable surge in coin prices, with Bitcoin Cash and XRP showcasing distinct patterns and behaviors. Bitcoin Cash’s successful breach of resistance and its adherence to key support levels indicate a potential bullish trajectory, marked by pattern breakouts, favorable technical indicators, and critical support levels. Similarly, XRP’s struggle with long-standing resistance, coupled with its formation of an ascending triangle, suggests the possibility of an impending upside breakout. However, caution remains necessary, as XRP faces challenges in maintaining its positive momentum. Upholding key support levels and capitalizing on technical strengths will be pivotal for sustaining the current optimistic sentiment. As the crypto landscape continues to evolve, monitoring these developments closely will provide valuable insights into the future trajectories of BCH and XRP.
Chart from TradingView
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