Bitcoin (BTC) broke out from a descending resistance line and reclaimed the $47,800 resistance area afterwards.
Ethereum (ETH) also broke out from a descending resistance line but is trading below the $3,650 resistance area.
XRP (XRP) is following a descending support line and trading below the $1.07 resistance area.
Monero (XMR) has yet to break out above its descending resistance line.
Terra (LUNA) reached a new all-time high on Oct 4.
SHIBA INU (SHIB) broke out from the $0.000009 resistance area and increased by 115% in two days.
Dogecoin (DOGE) is still decreasing alongside a descending resistance line.
On Oct 1, BTC broke out from a descending resistance line. This put an end to the downward movement that had been ongoing since Sept 4 (red icon). Therefore, it is possible that the downward trend has ended and BTC will now head upwards.
On Oct 3, BTC also broke out from the $47,800 area, further support this possibility. The next resistance area is at $56,200.
Technical indicators also support the continuation of the upward movement. The MACD, which is created by multiple moving averages (MA), has crossed into positive territory. Also, its histogram is almost positive (blue icon), a sign that the short-term trend is accelerating faster than the long-term one.
Furthermore, the RSI has moved above 50 (green icon). The RSI is a momentum indicator and its crossed above and below 50 can be seen as determinants of a bullish or bearish trend.
The previous time the RSI crossed above 50 was on July 23, right after the current upward movement began.
The movement of ETH is relatively similar to that of BTC. The token also broke out from a descending resistance line on Oct 1, putting an end to the previous downward movement.
However, unlike BTC, it has yet to move above its closest resistance area of $3,650. Once it is able to do so, it would likely increase towards the Sept highs of $4,027.
The MACD and RSI readings are identical to those of BTC, supporting the continuation of the upward movement.
XRP has been decreasing alongside a descending support line since Aug 13. Most recently, it bounced at the line on Sept 21 and initiated the current upward movement.
While this can be seen as a sign of a bullish trend reversal, the token is still trading below horizontal resistance at $1.07.
The MACD and RSI are providing readings similar to those of ETH and BTC. However, the MACD is still negative. This means that while the short-term MA is moving upwards at a faster rate than the long-term MA, it is still below it. Therefore, the trend cannot yet be considered bullish.
XMR has been decreasing alongside a descending resistance line since Sept 24. The decrease culminated with a low of $212 on Sept 21. Afterwards, the token bounced (green icon) and has been moving upwards since.
The bounce validated the $225 area as support, since an upward movement was initiated at the same level on Aug 4 (green icon). Therefore, as long as the token is trading above this area, the trend can be considered bullish and bounces are likely to occur is the area gets re-tested.
However, XMR is still following a descending resistance line and facing resistance at $275. In order to move towards its Aug highs, it first has to clear this strong confluence of resistance levels.
LUNA has been moving upwards at an accelerated rate since Sept 29. when it validated the $33 level as support. Several days prior, it broke out from a descending resistance line and moved above the area for the first time.
The fact that the token broke out from both a diagonal and horizontal resistance levels is a testament to the strength of the current trend.
On Oct 4, the token reached a new all-time high price of $49.54.
If the upward movement continues, the next resistance area would be at $58. The resistance is created by the 1.61 external Fib retracement resistance level when measuring the previous drop. When coins are at an all-time high, external Fib retracements are often used due to a lack of overhead resistance.
For this reason, the upward movement could even become parabolic.
In the period from June 13 to Oct 4, SHIB consolidated below the $0.000009 horizontal resistance area. On Oct 4, it broke out amidst a massive bullish candlestick.
The fact that the token consolidated for three months prior to breaking out is a sign that the ensuing upward movement could be very significant.
In a span of only two days, the token has increased by 115%.
However, it is approaching the first Fib retracement resistance level at $0.000022. Since the token has not retraced at all since the breakout, a rejection and short-term retracement would be a common occurrence.
Afterwards, the next resistance area would be at $0.000027.
DOGE has been decreasing alongside a descending resistance line since Aug 16. The downward movement led to a low of $0.19 on Sept 29. A bounce followed afterwards.
The bounce is significant since it validated the $0.195 area as support. The same area was the catalyst for an upwadr movement on Aug 3.
However, the trend cannot be considered bullish until DOGE breaks out from the descending resistance line.
What do you think about this subject? Write to us and tell us!
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.