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Analysis: Cryptocurrencies Edge Higher Without Real Momentum

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Suspicious; that’s probably the best word to describe the rally attempt of the major coins off the China lows this week. The segment definitely stabilized after losing 20% in market cap compared to the all-time highs a couple of weeks back, but last week’s uncertainty is still clearly in the air, and the buying that the most valuable currencies are experiencing is far from being convincing. That said, the most important support levels are holding, with Bitcoin trading well above $4000, and Ethereum also being north of the $300 level, for now.

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ETH is still relatively weak compared to its big brother, trading some 30% lower than its all-time high, which it hit back in July near $400. While all eyes are on the $300 level now, the $285 support is more important from a technical standpoint, and break below that would open up the way towards the $235-$250 zone, which is still a likely candidate for a major bottom.

ETH/USD, 4-Hour Chart Analysis

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The other majors are little changed, so far today, and although BTC is still relatively strong, the recent market leaders, namely Dash, Monero, and LItecoin, failed to regain their strength and remain in the no man’s land between crucial support and resistance levels. With the overall long-term picture still looking overbought, the odds of another leg lower are high, even as most experts dialed down the fears regarding the new Chinese regulations. NEO is still signaling selling pressure in connection with the country, as it failed to follow to follow the market higher and recover above $25. Let’s see the details of the short-term technicals today.

Bitcoin

BTC/USD, 4-Hour Chart Analysis

Bitcoin’s relative strength persists compared to the other majors, although the short-term movement of the currency is less convincing, and it’s still well below the $4400 resistance despite the recent bounce. The short-term trend remains negative, and the $4000 suport level could get back in the center of attention in the coming days, and we still expect a move below that, with further support levels are found near $3800, $3500 and $3150.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin failed to lead the market higher once again, as it did last week, and it remains inside a correction pattern, with te long0term picture still being clearly overbought. The coin is still above the $64 support/resistance line that held up during the previous legs lower, but we expect the coin to dip below that and probably test the $56 support before the end of the correction.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is trading in line with the broader market, staying well above the key $300 level, but failing to move above the declining short-term trendline and the $360 resistance. The currency is overbought regarding the long-term picture, and a move below $300 is still the most likely scenario for the coming weeks. Support is found at $265 and near $220, and the long-term uptrend is not in any danger right now, but investors should still wait with opening new positions.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP got very close to the upper boundary of the resistance zone around the $0.22 level, and the declining short-term trednline, still showing relative strength in the current bounce. The coin is neutral regarding the long-term picture, and we expect it to outperform the other majors during the correction phase. Support is still found below the $0.20 level, at $0.18 and near $0.16, while resistance is ahead at $0.26 and around the $0.30 level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic turned lower off the $16 level yet again, as the coin remains among the weakest majors regarding the short-term picture. The coin is back in the prior long-standing trading range after the surge to the all-time high, and although we still expect a move to new highs mid-term, short-term traders should wait with new positions until a new trend is established. Primary resistance is still at $16, with further levels at $18, and at $23, while support is found at $14.50 and around $13.50.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is trading in a very narrow range halfway between the $100 and $125 support/resistance levels, as the coin is still overbought concerning the long-term picture, while being stuck in a short-term downtrend. We still expect a move below $100 in the coming period, with a likely test of the $80 level, and possibly the$72 support as well.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is still trading just above the $22 level, failing to bounce back after the news on the possible Chinese exchange closures. The coin is stuck in a lengthy downtrend since hitting a high above $50, and although the long-term picture is getting oversold, more volatility is expected in the coming weeks. Below $22, strong support is at $16.50 while resistance is ahead near $30 and $40.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA staged a strong rally off it’ slows near $0.48 today, but the declining trend is still clearly intact, and the $0.65 resistance proved too strong for now. The coin has strong support between the $0.45 and $0.48 levels that could provide a base for the next leg higher, but despite the oversold long-term picture a dip towards $0.35 is still in the cards, with the sector being in a broad correction. Investors could add to their positions on the short-term dips, but traders should wait until a new uptrend is established before entering new positions.

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Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

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Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

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BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

BTC/USD, Daily Chart Analysis

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Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

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Analysis

XRP Looking to Make a Significant Rally

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The XRP/USD pair went into a deep correction after hitting 0.29490 a month ago. It nosedived to the major support level of 0.19052. The pair consolidated for a few weeks which gave the market the legs to test resistance at 0.22924.

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Technical indicators show that the pair was ready to breach its immediate resistance, which it did this morning. Now that resistance has broke at 0.22924, it’s time to buy. This successful breakout will take the pair to 0.23997 first and 0.26563 next before hitting the target of 0.26796 which is coincidentally a major resistance level.

Technical indicators hint that the market would most likely be overbought by the time it hits 0.26796. Should it respect the major resistance level, the likelihood of the market turning extremely bearish increases. Therefore, it is recommended to closely watch your trail stops to preserve your gains.  

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Summary of Strategy

Buy: As close to 0.22924

Support: 0.22224 and 0.20081

Target: 0.26796

Stop: If the market breaches 0.20081 as next reliable support is 0.19052

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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