Analysis: Dash Tests All-Time High as Bitcoin Correction Continues
BTC settled down slightly after a swift 10% correction yesterday, and it continues to trade near the $4000 level, still being strenuously overbought regarding the long-term picture. The coin might be forming a short-term Head and Shoulders topping pattern, which would have a target price of $3200 if completed. That said, a move above $4200 could signal more short-term upside, with the 4-Hour MACD moving back to neutral territory. Long-term investors should still stay away from new positions after the huge rally.
BTC/USD, 4-Hour Chart Analysis
Ethereum bounced back to the $300 level after yesterday’s dip, as the ecosystem is getting ready to a major upgrade. The trend is clearly up in the coin, as it is in Dash and Monero, while the rest of the majors are more neutral. Ripple and Ethereum Classic remain in downtrends, while Litecoin is still trading sideways, without a clear short-term trend. The coming days will be crucial for BTC and Ethereum, while Dash might be ready for its much-awaited break-out. Let’s look at the short-term charts for clues.
ETH/USD, 4-Hour Chart Analysis
ETH approached the rising trendline during yesterday’s dip, but it remained clearly bullish and recovered above the crucial $285 level. The MACD indicator is about to provide a bullish cross, and the next leg up in the uptrend could begin in the coming days. Key resistance levels are ahead near $330, at $380, and above that near the prior all-time high at $400.
LTC/USD, 4-Hour Chart Analysis
Litecoin is virtually unchanged today, trading near the $42 level after breaking below the advancing short-term trend. The coin is still in neutral territory both short- and long-term, and traders should wait with new positions until a new short-term trend is established. Support is still found near $42 and $38, with resistance ahead at $46 and $50.
DASH/USD, 4-Hour Chart Analysis
Dash continues to act strong and the coin spiked higher today in early trading but failed to stay above its prior highs. The currency is still holding up well above the $200 level, and it is also above the prior triangle consolidation pattern, pointing to rally towards our range projection target just below $260.
XRP/USD, 4-Hour Chart Analysis
Ripple is still the weakest major short-term showing no signs of an imminent break-out, despite the more than two-month long correction. The coin is still inside a forming long-term base pattern, but short-term traders should wait for a break-out from the current pattern before entering new positions. Resistance is ahead near $0.16 and $0.18, while support is found at $0.14.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic showed some strength near the lower boundary of its crucial support zone around the $14 level, but the coin remains well inside its correction pattern. Strong resistance ahead at $16 and at $18, and short-term traders should wait for at least a move above $14.50 before entering new positions, while investors could still add to their positions here.
XMR/USD, 4-Hour Chart Analysis
Monero is still trading inside a short-term consolidation pattern near the $46 level, still showing relative strength after its encouraging rally. Further support levels are found at $42 and near $37, while the prior all-time is ahead as resistance above the recent swing high at $53.50.
NEM/BTC, 4-Hour Chart Analysis
NEM continued its bounce against BTC as expected, spiking above the 0.000065 level amid the Bitcoin correction. The coin is still likely to re-test the 0.00009 level in the coming period, as the long-term picture remains bullish. Support is found near the 0.0000575 and 0.000048 levels, with primary resistance ahead at 0.000075.
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