Litecoin and Ripple coin were among the pioneers in the crypto market, together with Bitcoin of course. They endured some heavy losses during the crash until July, and the volatility remains high, with big ups and downs. Since the crypto crash in May, they have been battling to get on a stable bullish trend, although that might be changing soon, as they appear ready to make the next bullish leg, so let’s have a look at both of them.
Litecoin Monthly Chart Analysis – Ready to Bounce Off the 20 SMA?
The 20 SMA has turned from resistance into support
Litecoin surged during the first few months of this year, until May, reaching $414, although it didn’t quite makeh the 2018 high of $420. Moving averages did a great job as support and resistance indicators on this timeframe, as soon as they appeared.
The 20 SMA (gray) provided resistance at the top, after the failed attempt to turn the price bullish. It remained as resistance until late last year, when LTC/USD followed the rest of the crypto market and exploded higher, and now the 20 SMA seems to have turned into support. The price pierced this moving average during the second major crypto retreat, but there was no close below it, so there was no official break.
LTC/USD formed a pin candlestick above it, which is a bullish reversing signal, and the price started to reverse higher, but last month, it turned back down, as the crypto crackdown intensified on a global scale. But the 20 SMA continues to hold as support, and October is looking bullish already, so it seems like Litecoin could jump higher at any time.
Litecoin Weekly Chart Analysis – Ready to Bounce Off the 20 SMA?
Litecoin bouncing between 2 MAs on the weekly chart
On the weekly chart, we see that the 20 SMA (gray) was acting as support early this year when the price was bullish, and now it has turned into support, stopping LITECOIN from resuming the bullish trend. The 50 SMA (yellow) has turned into the ultimate support at the bottom, pushing the price up. So, the trading range is tightening, and Litecoin is forced to head into the tip of this triangle.
We expect a break to the upside, since developments at the Litecoin headquarters are positive too. Yesterday, the fifth-largest commercial bank in the US, the US Bank National Association (aka “US Bank”) announced that it has launched a crypto custody service for Bitcoin and Litecoin, aimed at investment managers. This is quite positive news for Litecoin, which has felt the burden of the crackdown, so we expect Litecoin to resume the bullish trend as soon as the negative sentiment wave due to the crackdown is over.
Ripple Coin Weekly Chart – Already Bouncing Off the 20 SMA
The 20 SMA acting as support for Litecoin now, after the 50 SMA did so in summer
The surge in Ripple coin during spring was short-lived; it only lasted several weeks before the price dived down again. But, the 50 SMA turned into support for this crypto coin in July, and the price bounced to $1.40 off that moving average. Now, it seems like the 20 SMA (gray) has turned into support for XRP/USD, holding the pullback. The price is already bouncing higher off this moving average, so this might be the beginning of the second bullish leg.
So, both cryptos look ready to resume the bullish trend. The SEC is not planning to ban cryptocurrencies, as the chairman, Gary Gensler, confirmed Jerome Powell’s comments earlier. So, this is a positive comment for Ripple, which is in a legal battle with the SEC in the US.