Analysis: Ripple and NEO Soar as Ethereum Classic Breaks Out
The influx of capital into altcoins continues in earnest, as Ripple added to yesterday’s lofty gains, and it catapulted back to the third place regarding market capitalization. The coin took over Bitcoin Cash after almost doubling in price in a couple of days. XRP is now just below the $0.30 level, although the all-time high of the currency is still 50% higher than the current price. Investors could reduce positions near the resistance zone just above the current level, as a correction back towards $0.25 is likely in the coming days.
XRP/USDT, 4-Hour Chart Analysis
NEO and ETC also moved out their correction patterns, and now all of the major coins are back in uptrends after the summer bear market. The total value of the cryptocurrency market reached $150 billion as Bitcoin also moved higher after Monday’s spike lower. The rest of the most valuable coins are also in the green, as the broad rally continues in the segment. While some of the majors are already in overbought territory, there are still opportunities in the sector, as some of the coins are still in the early stages in trend. Let’s see how the technicals are shaping up today.
BTC/USD, 4-Hour Chart Analysis
Bitcoin surged back to its prior short-term rising trend channel as buyers stepped in after the steep drop yesterday. The coin remains overbought regarding the long-term picture, and investors should still wait with new positions, while traders could play the volatile swings in both directions. Key support is found at the $4000 price level, and below that near $3800, $3500, and $3150.
ETH/USD, 4-Hour Chart Analysis
ETH is also up today after the dip on the first day of the week, but it remains below Sunday’s high, despite trading within the short-term uptrend. The $330 level remains in focus, with strong support near $300 and $285. Strong resistance is ahead at $380, and we still expect a test of that level, and possibly the all-time high of the token near $400.
LTC/USD, 4-Hour Chart Analysis
LTC continues to trade just above the $46 level, still within a narrow range and a broader triangle pattern. We still expect a break-out in the coming period, with a move towards $50 and the all-time highs near $56. Short-term traders could still wait for a break-out of the triangle before entering into new positions, but the technical picture remains bullish, in all time frames.
DASH/USD, 4-Hour Chart Analysis
Dash is still trading just below the $300 level, inside the short-term uptrend, after the huge weekend move. The currency might be ready for another push higher, although the long-term picture is already overbought, but short-term traders could still enter new positions here. Support levels are found near $266, between $220 and $230 and at $200.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic finally moved out of the previously dominant downtrend today and it is testing the $16 resistance. Should the break-out hold its ground, the next target of the move is at $18, with further resistance levels found at $20 and near $22. Long-term support is found between $13.50 and $14.50. The long-term picture momentum indicators are still in neutral territory, leaving more room higher for the rally.
XMR/USD, 4-Hour Chart Analysis
Monero breached the $100 level after pushing to a marginal new high following Monday’s break-out. The coin is now back near the prior range projection target at $91, and with the long-term picture turning overbought, investors shouldn’t open new positions here. The coin is also overbought short-term, pointing to a correction in the coming days.
NEM/BTC, 4-Hour Chart Analysis
NEM is still stuck in the volatile trading range that developed after the coin’s break-out. The coin is hovering around the 0.000065 level with strong support levels near 0.0000575 and 0.000048. Resistance is ahead at 0.000075, and we still expect a move back towards the recent high at 0.00009 as the Bitcoin correction unfolds.
NEO/USDT, 4-Hour Chart Analysis
The coin moved out of its declining short-term trend after a 50% correction, and rallied through the resistance zone around the $40 level quickly. Neo could be ready to test the prior high soon, but it faces resistant before that near $47.50, which could trigger a short-term correction.
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