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Analysis: Dash Leaps Above $500 as Coins Rebound from Sell-Off

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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.

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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

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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.

Ethereum

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.

Litecoin

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.

Ripple

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.

Ethereum Classic

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.

Monero

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

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

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.

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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.

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1 Comment

1 Comment

  1. douglash

    November 22, 2017 at 11:18 pm

    DASH has been overdue for this breakout. Value follows hash power and the Antminer D3 ASICs have sent the x11 hash power through the roof in the past quarter.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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Analysis

Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move

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Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2668 -0.02%
DAX 13125 -0.45%
WTI Crude Oil 56.65 -0.68%
GOLD 1258.00 1.35%
Bitcoin 16,100 -6.32%
EUR/USD 1.1842 0.73%

The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.

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EUR/USD, 4-Hour Chart Analysis

The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.

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WTI Crude Oil, 4-Hour Chart Analysis

The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.

Cryptocurrencies

As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.

BTC/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
11:30 UK Average Earnings 2.5% 2.5% 2.3%
11:30 UK Claimant Count Change 5,900 3,300 6,500
11:30 UK Unemployment Rate 4.3% 4.2% 4.35
15:30 US Core CPI 0.1% 0.2% 0.2%
15:30 US Crude Oil Inventories -5.1 mill -3.6 mill -5.6 mill
21:00 US Fed Rate Decision 1.5% 1.5% 1.25%
21:00 US FOMC Statement

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