- ADX reaches levels not seen in a long time.
- The reverse reaction can be very aggressive and may trigger high volatility.
- An ON/OFF market can now blow the fuse.
Another day. Boredom is the aspect that stands out among the Crypto market leaders. Yesterday’s analysis pointed to the possibility of an upward movement starting soon, but it seems that this market’s ability to push everything to the limit also includes boredom.
This market that has us used to swift movements, is also capable of stretching the technical structures in time until putting everybody to sleep. Let’s hope that the day the crypto market starts to move it does so progressively.
I doubt it.
I doubt it because in the detailed analysis you will see, I expose the extreme bearish levels that the ADX is marking. There is a total absence of intraday trend force, in levels not seen in at least one year in the case of XRP. This setup shows us an extreme data that augurs an upcoming return of the trend force and with it the volatility.
The way out of this calm situation promises to be exciting.
BTC/USD 240 Minute Chart
The BTC/USD pair is currently trading at the $3,853 price level, exactly at the EMA50. This exponential average is supporting Bitcoin in a situation of tense calm before the next triple encounter between the main averages.
The second support level for the BTC/USD pair is at $3,824 (SMA100), then the third support level is at $3,770 (SMA200). If BTC/USD loses this last support level, the most likely destination is the first price congestion support which is at the $3,695 price level.
Above the current price, the first resistance level for BTC/USD is at $3,894 (price congestion resistance), then the second resistance level is at $4,050 (price congestion resistance), while the third resistance level is at $4.195 (price congestion resistance).
The MACD on the four-hour chart shows the two averages very close together, with little inclination and slightly below the indicator’s zero (neutral) level. It does not provide any directionality information today.
The DMI on the four-hour chart shows us how the bulls have managed to get above the ADX line, a position they share with the bears. The reading is that there are doubts about the direction of the market, but with the conviction that the exit from this price range can be violent.
ETH/USD 240 Minute Chart
The ETH/USD pair is currently trading at the $132.78 price level, already moving below all the moving averages used in the technical analysis. In the case of Ethereum, these moving averages are in an immediate crossover situation, which will bring volatility to the price and possibly to the market.
Below the current price, ETH/USD has its first support at $130.8 price level (price congestion support). The second support level is far, only at the $120 price level (price congestion support), while the third is at $115 (price congestion support). If Ethereum reaches either of the last two support levels, it will send a signal of weakness that could lead to strong sales in the short term.
Above the current price, ETH/USD first has a very complex resistance level between the price level of $133.9 (SMA200), then the level of $135 (EMA50) and the price level of $135.5 (SMA100) completes it. If ETH/USD manages to overcome this resistance, the message would be very positive and could move quickly towards the second resistance level at $143 (price congestion resistance). The third resistance level is at the $151 price level (price congestion resistance).
The MACD on the four-hour chart shows us the lines crossed up, although the distance between the two averages is minimal. It moves slightly in the negative zone of the indicator and with a fully horizontal profile — contradictory information.
The DMI on the four-hour chart shows both bears and bulls moving above an ADX line that goes to minimum levels not seen since the February lows. If the pattern works, we could soon see a new bullish segment.
XRP/USD 240 Minute Chart
The XRP/USD is currently trading at the $0.311 price level, moving since yesterday below the main moving averages used in the analysis. Yesterday it found support at the price congestion level of $0.308.
Above the current price, the first resistance level is formed by the three moving averages which are respectively at the price level of $0.313 (EMA50), then at $0.314 (SMA100) and finally at $0.319 (SMA200). The second resistance level is at the price level of $0.3175 (price congestion resistance) and finally the third at $0.328 (price congestion resistance).
Below the current price, the first support level is at $0.308 (price congestion support). The second support level is $0.30 (price congestion support), while the third support level is $0.293 (price congestion support).
The MACD in the 4-hour charts repeats what I see in the Bitcoin and Ethereum analyses: overlapping lines, slightly negative and flat. It hardly transmits information.
The DMI in graphs of 4 hours shows that the bears and bulls are tied around level 20 of the indicator. Both are predisposed to enter the trend at the slightest hint. The ADX, attention, shows a minimum level not seen in at least one year! This data is fundamental because it shows that the current situation is extreme and that, logically, it will tend to normalize. The derivative is that normality means trend strength, strong price movements and much volatility.