While most major altcoins have been surging, XRP has been languishing near its recent lows, suggesting that traders are not aggressively buying at the current levels.
The consolidation also suggests that the bears are taking it easy. This lack of interest from the bulls and the bears could extend the range-bound action for a few more days.
The next leg of the down move could start if the bears sink the price below the $0.169 support. Such a move could trigger panic selling that may result in a decline to $0.10.
On the contrary, a break above the 20-day EMA ($0.30) will be the first sign of strength and the recovery could pick up steam above $0.385.
After the large range day on Jan. 4, Litecoin (LTC) formed an inside day candlestick pattern on Jan. 5, which showed indecision among the bulls and the bears. The uncertainty has resolved to the upside and the bulls are currently attempting to resume the uptrend.
If the bulls can propel the price above $173.3312, the LTC/USD pair could rally to $180 and then to $200.
However, if the price turns down from $173.3312, then the pair could drop to $140 and remain range-bound between these two levels for a few days.
A breakdown below the $140 support and the 20-day EMA ($130) may shift the advantage in favor of the bears.
Cardano (ADA) is currently in a strong uptrend that has a target objective of $0.40. If this level is scaled, the altcoin could even rally to $0.50. However, the sharp rally since Jan. 3 has pushed the RSI deep into the overbought territory.
History suggests that whenever the RSI rises above 80, the ADA/USD pair has witnessed a minor correction or consolidation. Therefore, traders may prepare for a minor pullback in the next few days.
If the bulls do not give up much ground and the pair rebounds off the 38.2% Fibonacci retracement level at $0.2757469, it will suggest that traders are not booking profits in a hurry. The bulls could then attempt to resume the uptrend.
Conversely, if the bears pull the price below the 50% Fibonacci retracement level at $0.2552813, it will suggest aggressive profit booking at higher levels and such a move could deepen the correction or keep the pair range-bound for a few days.
Polkadot (DOT) recovered from $8.70 on Jan. 4, just above the 38.2% Fibonacci retracement level at $8.4507. This shallow correction suggests traders are aggressively buying on every minor dip.
If the bulls can thrust the price above $10.5169, the DOT/USD pair could pick up momentum and rally to $12.39 and then to $15.
However, if the price turns down from $10.5169, the pair may drop to $8.70 and remain range-bound between these two levels for a few days. A consolidation near the overhead resistance is a positive sign and increases the possibility of the resumption of the uptrend.
This positive view will invalidate if the bears sink the price below $8.70. Such a move could pull the price down to the 20-day EMA ($7.59).