Analysis: Cryptocurrencies Prepare for the Next Move
The major coins are in a low-volatility consolidation phase, as they have been trading all weekend long. The strong rally of last week reached short-term overbought territory, as Bitcoin got close to its all-time high near the $3000 level. The most valuable coin is still showing strength holding well above primary resistance, which is currently found at $2650. As the long-term picture just reached neutral stance after the one-month long correction, at least a test of the prior high is very likely, with the currency still following our projection from June.
BTC/USD, Daily Chart Analysis
The other major coins are also lower today, but they are holding on to most of their recent gains although Ethereum, Monero, Litecoin, Ripple are still in a downtrend that has been dominating trading since June. Dash remains the strongest major besides Bitcoin, while Liteocin and Ethereum Classic are still in different trend phases compared to most of the other majors. As several buying opportunities are developing in the current correction, let’s see how the majors are looking before at the beginning of the week.
ETH/USD, 4-Hour Chart Analysis
Ethereum is in a volatility compression pattern below the key trendline after the 80% rally off the lows last week. The ETH token has lagged BTC in the second half of the week, but it’s holding up above support, despite the lack of short-term bullish momentum. The short-term picture is still neutral, but the relative strength in small caps is promising, and a break above the trendline is likely in the coming period.
LTC/USD, 4-Hour Chart Analysis
Litecoin is trading right at the$ 44 level after exiting the short-term declining trend last week. Volume is low in the coin and as more sideways price action is likely before a move towards the $50 level and the long-term range projection target near the $58-$60 zone. Support is found at $40 and at $38, and LTC is still among the strongest major coins regarding technicals, and traders should be looking for buying opportunities.
DASH/USD, 4-Hour Chart Analysis
Dash is consolidating below the $200 level, but the break-out attempts have failed so far, while the coin is holding above the $190 level. Both the short- and long-term picture is encouraging, and the prior highs are close, with our long-term target still found just above $250.
XRP/USD, 4-Hour Chart Analysis
Ripple showed strength during the weekend, breaching the $0.20 level and getting close, and getting close to the crucial support/resistance zone near $0.22, and the declining long-term trendline that is also at $0.22 right now. A break-out above the trendline would signal a key trend change after the two-month long correction.
ETC/USD, 4-Hour Chart Analysis
ETC is hovering around the $16 level that after the quiet weekend, still below the key $18 resistance, with very low trading volumes. Primary support is found around the $14 level, and with the long-term momentum showing oversold readings, investors could still add to their positions during short-term dips.
XMR/USD, 4-Hour Chart Analysis
Monero remained strong during the weekend and rallied above the dominant declining trendline before entering a short-term correction. The coin is still facing the key $46 resistance level, after forming a long-term base between $32 and $37, but now both the short- and long-term
Featured image from Shutterstock