Analysis: Litecoin and NEM Jump on Another Great Day for Cryptocurrency Investors
The major coins are all in the green today, with Monero, NEM, and Litecoin sporting the biggest gains amid the broad rally. Litecoin is on a new all-time high above the $69 level after several days of consolidation, and the currency looks poised for a test of the $70 level in the coming period, as it remains among the most promising cryptocurrencies concerning the technical setup. With both the short- and long-term uptrends being intact, and as the coin is not yet overbought, there is a good potential for more upside.
LTC/USD, 4-Hour Chart Analysis
Bitcoin is also trading on a new high all-time again, clearing the $4700 level for the first time ever. Ethereum is now only a tad below its own record high, while Monero and Dash are around 10% off their recent peaks, still trading in correction patterns. Ripple is also on the move, although the fourth largest coin is still well off its May levels, while Ethereum Classic is still stuck near the $16 level, with NEO trading in a volatile range among the relatively weak majors. As the broad now lifted the segment above $170 billion, more than three times the level of the July low, the risks continue to rise and investors should be looking for more defensive positions. Let’s see the short-term setups of the majors.
BTC/USD, 4-Hour Chart Analysis
Bitcoin crept higher throughout the overnight session and it is now just below $4750, after Tuesday’s break-out above $4500. While the momentum of the rise is still suspicious, and the long-term setup remains hostile, more upside movement is possible in the coming days amid the positive sentiment. We still advise long-term investors to be patient and wait for a deeper correction. Crucial support levels are now found at $4500, $4000, and near $3800 and $3500.
ETH/USD, 4-Hour Chart Analysis
ETH is now just a few percent above the current price level of the token, and a test of the $400 level is likely in the coming days. The short-term uptrend remains dominant in the coin, and although it is getting close to being overbought the currency remains on a buy signal on both time-frames. Support levels are found at $330, $300, and $285, while the rising trendline is currently at $380.
DASH/USD, 4-Hour Chart Analysis
Dash has been lifted by the broad rise in the majors today, but it is still within the short-term trading range that developed after the weekend correction. As the short-term trendline is now broken, we still expect the coin to enter a deeper correction soon, with strong support levels at $300, near $265, and around $230.
XRP/USD, 4-Hour Chart Analysis
Ripple is on the move today, as we expected, as it broke out of the volatile short-term consolidation pattern that formed after the recent break-out. The coin now left the vicinity of the $0.22 support/resistance level, and it is now probably headed to $0.26 and $0.30, the next two major resistance levels. Below $0.22 more support is found near $0.20, $0.18 and $0.16. The long-term picture is still near neutral, leaving plenty of space for the currency to rally.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is testing the resistance zone near the $16 level yet again, but it is still unable to leave the long-standing range. The coin remains relatively weak compared to the other majors, despite the encouraging long-term picture. The currency faces resistance near $18 and $23, while the long-term base pattern is still around the $14 level.
XMR/USD, 4-Hour Chart Analysis
Monero found support near the $125 level again, and it is now trading slightly below $150 again, despite breaking the steep short-term uptrend recently. The short-term momentum readings are back to neutral, but long-term the coin remains overbought, and a deeper correction is likely in the coming weeks. Support levels are still found near $125, at $100, and around $80.
NEM/BTC, 4-Hour Chart Analysis
NEM finally made its move that we have been long expecting today, and it is testing the 0.000075 level, despite the strength in BTC. The coin remains bullish both short- and long-term and a rally to 0.00009 is still likely in the coming period, although the broad trading range is still intact. Support is now found near 0.000065, 0.0000575, and 0.000048.
NEO/USDT, 4-Hour Chart Analysis
NEO settled down somewhat after the volatility of the recent sessions, and the coin is now trading between $30 and $35 in a relatively narrow range. The currency is still bullish regarding the long-term picture, but more sideways price action is likely following the failed move above $40. Above that level, further resistance is ahead near $46, while support is at $30 and $22.
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