It is testing support at prior highs as well as support.
Yet, daily remains above 50.
Odds look good for a multi-day bounce, or a rally to new highs. However, they are just odds. I like this chart better than Ripple. Ripple's chart looks... "inorganic", if that's a thing. Just a gut feeling.
Probably just got lucky.
The MACD is a pretty slow lagging indicator. Often, by the time it turns, the move is well underway and a low-risk stop point is farther away.
Plus, I don't give too much weight to any one indicator. I notice the crypto markets love to test prior highs as support levels.
I have learnt over the last few weeks that RSI/MACD and the EMA 20/50/100 are all used. Do you have any favorites?
I also agree that prior highs and finding support there seem to be very common.
It really is more of an art than a science. The same indicator can mean different things, depending on market conditions. For example, in a strong uptrend, RSI & Stochastics remain overbought, and dips should be bought.
I think the simple 50-day moving average is a good indicator. Watch how it acts as support often, and when charts "bounce" off of it. That could be happening on this XLMETH chart. The combination of multiple support types converging increases confidence.
The 10- and 20-dma are also good. These can often be used as stop-levels when a price-support is not available or too far. Today, the 10-dma supported the rally in Gold. They work because lots of people see them. Buyers who missed a rally will wait for a "support" level to buy and the 10ma is simply widely seen. Nothing magical, just psychology!
Each chart has different personality, in different time periods. Strategies are constantly changing! Good luck!
Shorter term graphs may show temporary downward moves in that larger bullish trend though! (I did not analyse up to that detail)
Any thoughts though on the 1D-death cross in MACD? I would be interested to hear your views on that one!
I personally try to keep it real simple, as most of the indicators cannot tell me much more than price itself.
This time, the entire crypto space bottomed together, with many altcoins bottoming at the exact same time. It's hard to give credit to any one altcoin or one chart.
For the MACD, are you talking about the daily chart? Yes, it could be that on a longer timeframe, this needs more time. The weakness in Ripple is surely frustrating many right now.
By the way, most of my position is in VEN right now, usually a solid uptrend makes everything easier.