Analysis: Dash Leaps Above $500 as Coins Rebound from Sell-Off
The news of a serious hack caused a short but steep dip in the most important cryptocurrencies today, and the majors bounced back in a divergent manner, with Dash taking over the leadership of the segment, together with IOTA and Bitcoin, following a break-out of its correction pattern.
The coin surged back to its previous all-time high near the $500 level and it looks set the move to new highs, with targets ahead at $540 and $610. As the long-term picture is getting overbought, investors should now cut their holdings as the currency advances, while traders should still play the move higher.
IOTA/USD, 4-Hour Chart Analysis
BTC is still holding up strong near its all-time high and above the $8000 level despite the pull-back and the stretched long-term picture although the move to marginal new highs still lacks momentum. Investors should still wait for a deeper correction before entering new positions, while traders should control position sizes as correction risk is high. Crucial support levels are still found at $7700, $7000, and $6700.
BTC/USD, 4-Hour Chart Analysis
Among the manor altcoins, Ethereum, Litecoin, Monero, and IOTA are relatively strong while Ripple, Ethereum Classic, and especially NEO are lagging today in the choppy and slightly nervous environment. With the bull run clearly being intact, there are still short-term opportunities in the segment, so let’s see the detailed analysis of the charts.
ETH/USD, 4-Hour Chart Analysis
Ethereum recovered well form the sell-off and it continues to edge higher towards the $380 resistance, despite the slightly overbought short-term momentum readings. The long-term picture remains supportive of a move towards the all-time highs near $400. Support is found below the current price level at $350, $330, and near $315.
LTC/USD, Daily Chart Analysis
Litecoin is still stuck below the $75 resistance, although the coin bounced back instantly after today’s dip and re-entered the short-term range below the key level. As the short-term momentum is getting neutral again, we expect a move towards $82.50 soon, and the long-term picture is not yet overbought. Key support is still found below at $64, $56, and $53.
XRP/USD, 4-Hour Chart Analysis
Ripple failed to recover above yesterday’s highs after the dip in early trading as the coin entered a short-term correction again. The coin will likely test the support zone around the $0.2250 level again before the next major move, with the next bullish target being at $0.26 Further major support is found just below $0.20, and at $0.18.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is relatively strong so far today, although the coin still trades in a short-term uptrend, with the $18 level remaining in focus. The long-term picture is slightly overbought, but a tradable rally towards the all-time high at $23 is still likely with support levels at $18, $16, and $14.50.
XMR/USD, 4-Hour Chart Analysis
Monero was less involved in today’s sell-off as it remains one of the least volatile majors, and it promptly moved above the previous rally high and the $140 level. The only major resistance zone ahead is just above the current price at $150, and we expect a move to new highs in the current leg higher, with crucial support found at $125 and $100.
NEO/USDT, 4-Hour Chart Analysis
NEO tested the key support level near $34 during today’s move, and it failed to regain traction after the sell-off, and it is by far the weakest major today. That said, the long-term picture remains positive and the short-term overbought reading is also cleared and a move to new rally highs is still likely, with resistance ahead at $40 and $50.
IOTA/USD, 4-Hour Chart Analysis
IOTA got close to the $1 level before flash-crashing back to the $0.75 support today, and the recent leader of the rally bounced back hard after the panicky move. The coin still has the all-time high near $1.1 in sight but investors should sell into strength now as the long-term picture is overbought.
Featured image from Shutterstock
Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.