Crypto Majors (XRP, ETH, ADA, EOS): Breakout + Re-Test Setups

Updated: Feb 12

A number of crypto majors, most notably Ripple (XRP), Ethereum (ETH), Cardano (ADA) and EOS are currently offering re-tests of recent breakouts at least against the USD pair. This is a fantastic setup as it offers good R/R, has clear invalidation and if you're trading the USD pair has the advantage of stopping you out in USD instead of BTC given the uncertainty currently surrounding Bitcoin.


Ethereum (ETH) Trade Setup

Ethereum Trade Setup

As I write this, my bids for Ethereum just filled though I do have some closer to $176 in the event of a wick down. This is a high risk, but high reward setup that requires either close monitoring or a tight stop. Right now, ETH is re-testing the 20 day moving average and a daily support cluster in addition to the bottom of this parallel channel. The confluence for a strong setup are there, especially with weekly support just below. However, on the bearish side there's a potential head and shoulders forming on the 4H chart; I would be fast to bail on any close above 176. Initial targets are on chart - the first is confluent with the 0.236 retracement of Ethereum's downtrend as well as daily resistance and channel top, while the upper target lines up with a prominent trendline and the 200 day moving average.


Entry: Now, inbetween $176 and $178

Targets: $200-202, $210-212

Exit: Close below channel and/or $176

R/R: Depends on entry but should be roughly 10:1


Update (Oct 15): Closed this trade around $185 after the bounce. If still in it, no longer a valid setup due to loss of channel.


Ripple (XRP) Trade Setup

XRP Trade Setup

Ripple is probably the strongest looking major and with Swell on the horizon it's definitely one on most people's radars. It also hasn't retraced as much as the others during recent Bitcoin action which is a further sign of strength. My ideal fill is the green box but XRP has been resilient and I'm not sure if it gets filled; I'm at least waiting on a trendline re-test for a more aggressive entry. Invalidation on this trade is pretty clear with a loss of any combo of the 20 day or 50 day moving average and the trendline support. Target is shown on chart and is should roughly line up with the prior high, 0.382 retrace of Ripple's downtrend and the 200 day moving average.


Entry: Green box is ideal, but any successful re-test of the 50 or 20 day moving average or the rising trendline should offer good R/R. A more conservative entry would be to wait on a confirmed close above $0.29 and the 100 day moving average

Target: Prior highs and 200 day moving average around $0.32

Exit: Closing below the 20/50 day moving average and trendline support

R/R: Again, depends on entry but should be around 6:1 depending on entry and desired risk


Update (Oct 15): Took profit at $0.30, bidding pullbacks.


Cardano (ADA) Trade Setup

Cardano Trade Setup

I got filled on my Cardano entry yesterday when it tapped the green box on the above chart. It's the closest to invalidation of any of these setups which also means it offers the least downside. Right now it's hovering above the 20 day moving average and just bounced from the trendline support after re-testing the prior breakout range. I wouldn't wait for the green box to be tested again as that's bordering on invalidation but rather I'd look to enter now and cut if the green box and 20 day moving average are lost.


Entry: Right now, around $0.04

Target: For a shorter scalp you can take profit at $0.0445 which is the first major daily hurdle and the 50 day moving average. Primary target is around the $0.05 mark which is near recent highs and should line up with the 100 day moving average and the 0.236 fib of the downtrend

Exit: Close below 0.0395

R/R: Entering right now offers a 3:1 scalp setup or 9:1 swing trade setup


Update (Oct 15): Stopped out


EOS Trade Setup

EOS Trade Setup

EOS is another setup right at invalidation so it can be entered right now. It's currently bouncing from trendline support and re-testing the breakout zone. Invalidation on this one is a close below the trendline, the 20 day moving average or the trendline support.


Entry: Right now, $3.05 area

Target: Scalp play would be the 50 day moving average around $3.30 while longer term targets are $3.66 and $4.10

Exit: Close below trendline or 20 day moving average; stops a bit below $3.00 recommended

R/R: From here a scalp setup offers a 3:1 setup or the first swing trade target is 6:1


Update (Oct 15): Stopped out


Summary


All of XRP, ETH, EOS and ADA are offering phenomenal setups in my opinion. All with the exception of XRP are close to invalidation so offer good entries now and high R/R but should have tight stops or be monitored closely given uncertainty with Bitcoin right now. I just got filled on ETH, was filled the other day on EOS and ADA and am hoping for a bit lower on XRP to get filled.


I'm trading all of these either on Bybit, which has pairs for EOS, ETH and XRP and offers a $60 bonus for new users, or Binance which recently enabled margin trading.


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