According to crypto analyst John Isige, profit taking could drive the Shiba Inu (SHIB) price down by 15%. The analyst says it’s time to lock in the gains as Ethereum Classic (ETC) pulls back. The analyst also notes that the crypto industry Ripple (XRP) has bullish potential. We have compiled the analyst’s analysis of SHIB, XRP and ETC for our readers.
“SHIB remains in consolidation, but not for long”
cryptocoin.comAs you follow, SHIB consolidates within the confines of a rectangular model. There is pressure to buy. But more is needed to detonate SHIB on a northward move. It is highlighted by the 50-day Exponential Moving Average (EMA) (red). Therefore, if SHIB fails to hold above the most important support, sellers will be ready to play.
The rectangle pattern on the chart is considered neutral until it makes a clear break above or below the SHIB. It is possible that the downtrend before the rectangle increases the chance of SHIB falling 15% from its current market value.
Traders scanning for shorts should consider the SHIB out-of-trade until a clean break below the 50-day EMA. An ideal signal would be a break below the $0.00001277 rectangular support, ahead of the 9.80% profit target of $0.00001061. An uptrend in SHIB is doubtful, especially given the Market Value Realized Value (MVRV) profit model. The chart below shows most SHIB holders taking profits. Thus, they sell to stabilize gains while waiting for suitable entry positions on the downside.
MVRV monitors the profit or loss ratio of SHIB holders by comparing the last price of the tokens with their current market value. Data above 1 indicates an overvalued asset. This often results in an increase in overhead pressure.
On the flip side, traders cannot ignore a potential breakout equal to the width of the rectangle estimated at $0.00001303 from the breakout point. The bulls need to start with the defensive support provided by the 50-day EMA to ensure this breakout occurs.
“ETC succumbs to enormous resistance”
The move to $27.00 was largely dependent on the $22.20 support. Also, a four-hour close above the hurdle turned the support area at $24.00. This confirmed the bullish outlook in ETC price. As mentioned earlier, ETC rallied to $27.00 within the confines of the ascending parallel channel. Despite this impressive move, ETC turned bearish as investors took early profits.
If the $26.00 support succumbs to building-wide pressure, short sell orders will immediately become profitable. Also, the Moving Average Convergence Divergence (MACD) will likely confirm a sell signal before the new week. Traders should be careful when planning their next moves if they want to avoid sudden bullish retracements. Sell orders are triggered only after the 12-day EMA (blue) crosses below the 26-day EMA.
Before a strong downtrend, it is necessary to wait for the ETC to break clean below the 200-day EMA (purple). According to the Balance-Volume (OBV) indicator, most of the currently traded volume is negative. In other words, traders seem determined to sell ETC for short-term profit targets at the 200-day EMA, 50 EMA (red), and support indicated at $24.00. If there is a push, the altcoin will extend its leg to $22.20 before a recovery kicks in.
On the other hand, the bullish outcome of ETC cannot be completely ignored, especially when the altcoin is held above the three moving averages, the 50-days EMA, the 100-days EMA (blue), and the 200-days EMA. A four-hour candlestick above the weekly high of $27.00 likely adds confidence to ETC’s bullish narrative with targets at $30.00 and $34.00 respectively.
Does the XRP bullish outlook have potential?
Ripple price offers a lively bullish outlook despite a minor pullback from $0.50. It sits at the top of the Ichimoku cloud indicator. It also shows that the path of least resistance is up.
Also, XRP price is hovering above all applied moving averages, including the 50-day EMA (red), 100-day EMA (blue), and 200-day EMA (purple). Traders need to be cautious when looking for short-term longs in the XRP price, especially when the MACD is about to confirm a sell signal. A four-hour daily candlestick near $0.50 makes shorts profitable with potential exit targets of $0.47 and $0.46, respectively.
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