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Analysis: Cryptocoins Settle Down as Sentiment Improves

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Analysis: Cryptocoins Settle Down as Sentiment Improves

Introduction

This article was posted on Thursday, 16:05, UTC.

The aftermath of the Bitcoin Fork has been very encouraging for crypto-investors, as the brief volatile period and the uncertainty didn’t lead to an exodus of capital, which points to a stable market position. If the prior one-month long correction would have been the start of a major bear market this would have been the perfect “excuse” for another leg lower, but the technical picture remained virtually unchanged. That said, the second largest coin Ethereum is still slightly below the key convergence zone that is formed by the $235 resistance and the declining trendline.

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ETH/USD, 4-Hour Chart Analysis

Bitcoin is holding up well after the fork, consolidating below the recent highs, while  Bitcoin Cash settled down near $400 after two wild days, with the long-term staying power of the new coin still being questioned. NEM and Ethereum Classic are among the stronger majors today, while Ripple, Litecoin and Dash are little changed with the smaller coins generally trading in a positive mood. As the dust continues to settle, let’s take a look at the technical setups of the majors.

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Bitcoin

BTC/USD, 4-Hour Chart Analysis

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Bitcoin is trading in a volatility compression pattern since the fork, and that is a bullish sign after the strong rally off the correction lows. The prior all-time high is still ahead as primary resistance while support is found at $2600 and below that around $2450. Both the short- and long-term setups are still positive, and a rally to new highs is likely in the coming period.

Litecoin

LTC/USD, 4-Hour Chart Analysis

The convergence zone near the $44 level proved too strong for LTC in the past days, but the coin is holding up well just below the crucial level. The long-term picture still justifies more consolidation, but traders should still apply a bullish bias, as the other major coins could give a boost to the currency. Strong support levels are is still found at $40 and at $38.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is still trading in a very narrow range just below the short-term resistance at $190. The rising long-term trend is still intact. Strong support is found near $170, and below that around $150. We still expect a move above $200 in the coming period with the prior highs ahead near the $220 resistance, and the long-term range extension target just above $250.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP remains relatively weak as the token is still stuck below the $0.175 level, trading just above the crucial $0.16 level despite a brief spike higher yesterday. The coin remains on a short-term buy signal, despite the weakness and the long-term declining trendline is now only slightly above the current price at $0.21, possibly pointing to a long-term trend change.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC finally showed short-term relative strength today, forming a higher high, and providing a short-term buy signal. The coin remained above the key support zone around $14, and it might be ready to break-out from the dominant declining trend, with trendline resistance now ahead at $16.50.

Monero

XMR/USD, 4-Hour Chart Analysis

The $46 resistance level remains in focus for XMR, as the strong line still caps the rally, despite the relative strength that the coin has been showing. With strong support at $40 and $38, the currency is still on both short- and long-term buy signals, and a rally towards $50 is likely in the coming period.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM continued its strong break-out move today in early trading, surging past several strong resistance zone on the way. The short-term MACD is already showing slightly overbought readings, and short-term traders could already take some profits here. That said, the long-term picture remains clearly bullish and more upside is likely after a possible consolidation.

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR Chris G

    Posted on 2:51 am August 4, 2017.

    Ltc to 60! Let’s do this thing …

  • View Comments (1) ...
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