Black Friday seems to have arrived earlier in the cryptocurrency market. But, unlike the real Black Friday, nobody seems to be rushing in to buy cryptos at the current discount rate.
According to the Crypto Fear and Greed Index (CFGI), the overall market sentiment turned into “extreme fear” as investors expect a further downturn. However, historical data reveals that every time the CFGI goes into “extreme fear,” a buying opportunity is presented.
The following technical analysis will evaluate whether Ethereum, XRP, and Litecoin are bound for a deeper retracement or a bullish impulse.
In the last few weeks, Ethereum fell over 30 percent. This cryptocurrency went from trading at a high of $199 on Oct. 26 to a low of $138 yesterday. Despite this significant bearish impulse, ETH is now signaling a pullback to $181.
As a matter of fact, the TD sequential indicator presented two buy signals. These bullish signs came in the form of a red nine on both the 1-day and 12-hour chart. This technical index estimates that Ethereum could rise for one to four candlestick or begin a new bullish countdown.
Along the same lines, a reversal doji formed of ETH’s 12-hour chart. This candlestick pattern perceives a change in momentum from bearish to bullish. Closing above the 75% Fibonacci retracement level could validate the optimistic outlook. If that happens, Ether could surge to the next level of support around the 65% Fibonacci retracement level that sits at $181.
Nevertheless, a spike in sell orders that get Ethereum to close below the recent low of $138 could be catastrophic for its price. ETH could then try to test the $115 support level.
XRP’s price was contained within the $0.24 support level and the $0.30 resistance level since mid-August. However, the recent price action took it to break below support…