The crypto market is currently in fear. However, even in a market riddled with fear, XMR is rallying after breaking the technical laws while LTC aims $150 and Zcash aims new high.
Monero (XMR) defies technical laws
On the daily chart, Monero (XMR) broke above the upper trend line of the bearish rising wedge. This breakout is very strange as it goes against the norms of the technical setup. When a bearish rising wedge forms on the charts, the prices usually crash once they break out of the pattern. However, in this case, the opposite has happened. XMR has broken towards the upside and is currently priced at $416.
The bulls have been so dominant in the market that they have had the strength to evade a death cross. A death cross occurs when the 50-day moving average crosses the 200-day MA from above. When this intersection happens, the prices should further crash.
However, it was not to be. Priced at $416, XMR is now due for a price correction as the relative strength index has gone into the overbought zone. Based on the current scenario, the token will fall back to $332 for support.
Litecoin (LTC) aims at $150
Litecoin is a lighter version of Bitcoin, which was introduced to address BTC’s limitation of speed and cost. The LTC token is currently trading at $108, as it fluctuates inside a descending broadening wedge.
Although the name descending wedge sounds like a downtrend, however, it is not. It is a bullish pattern where the price breaks out upwards once it reaches the upper trendline of the pattern. Currently, LTC is testing the upper trendline of the wedge, and given that it breaks out now, the token can reach above $150.
Zcash (ZEC) shows bullish divergence
Zcash is currently priced at $650 after gaining more than 67% during the past week. The token was making higher lows and higher highs throughout the past week. However, just a couple of days ago, the token hit $734. The token is currently ranked 13th by market capitalization.
As shown in the 4-hour chart below, ZEC has been using the 50-day Moving Average as a trampoline to gain momentum. With every rebound, Zcash reached higher highs. After rebounding off the 50-day MA, the token is currently heading towards a new high, but it has met resistance at $632. However, the token will continue its upward motion, which is supported by the bullish divergence of the relative strength index (RSI).
A bullish divergence occurs when the RSI makes a lower high while the price makes a higher high. When this happens, it shows that the market is strengthening, but it has not been reflected in the prices. So this means the token will eventually keep appreciating.
