The major coins all rallied strongly in late trading on Tuesday, with Ethereum leading the way higher after surging past the $200 level and getting close to $250. The oversold long-term picture together with the positive news regarding Bitcoin’s scaling issues gave a huge boost to the whole market, as the weekend panic seems like a bad memory now.
ETH/USD, 4-Hour Chart Analysis
The previously stronger currencies underperformed the oversold coins, as Litecoin and Ethereum Classic only gained a few percent compared to the double-digit gains of BTC, ETH, Dash, and Ripple. As sentiment shifted strongly after weekend’s liquidation event, all eyes are now on the primary supports in the majors as a higher low would confirm the short-term trend change.
Barring a negative shift in the hard-fork saga, odds are high that the long-term correction has run its course, and the market will see a rally to test the previous highs. Let’s see how the majors look after the strong rally.
BTC/USD, 4-Hour Chart Analysis
Bitcoin got up to striking distance from the declining trendline that defined the one-month long correction and the coin looks set to test the important $2450-$2500 resistance. A short-term consolidation with a dip to $2250 could be the next move before after the huge rally, and we expect a higher low to form in the coming days.
ETH/USD, 4-Hour Chart Analysis
Ethereum took out the previous low near $170 as well and rose as far as $195 today in early trading. The ETH token is still not out of the declining trend but if it can hold above the $170 level, the odds of a sustained rally are very high, given the long-term setup and the encouraging bullish momentum of the bounce. The relative strength of the small cap coins in the last two days is also positive for the coin.
LTC/USD, 4-Hour Chart Analysis
Litecoin’s short-term chart is very busy near the $44 level, as the rising long-term trend, the declining short-term trend and a very strong support/resistance line are converging in the area. The coin turned very choppy in the convergence zone, and it failed to break-out convincingly so far. Short-term traders should wait with new positions until a new swing high forms, but the long-term picture remains clearly bullish, and we expect a test of the $50 level in the coming period.
DASH/USD, 4-Hour Chart Analysis
Dash broke out from its declining trend this morning, providing a short-term buy signal after consolidating near the prior all-time high of $150. The coin now faces resistance at $190 and $200, but a rally towards highs near $220 is likely in the coming weeks, probably after a slight pull-back after the more than 30% rally off the lows. Our long-term target is still found just above the $250 level.
XRP/USD, 4-Hour Chart Analysis
Ripple is now trading back in the long-term base formation after breaking out above the $17.50 level. The coin is still well below the declining trendline, far away from a long-term buy signal, but should a higher high form, small new positions could be opened, especially if the other majors remain strong.
ETC/USD, 4-Hour Chart Analysis
ETC is trading slightly above the declining short-term trendline, but it failed to close above the $16 level, as it underperformed the other coins after an extended period of strength. We still expect a move a move above $18 in the coming days, but more sideways action is possible between $16 and $14.50, with both the long- and short-term picture looking bullish.
XMR/USD, 4-Hour Chart Analysis
Monero is still among the weakest majors, with the declining trend being intact and the coin just above its prior correction high after the rally. Long-term investors could still add to their positions in the developing base formation, but short-term traders should still wait for confirmation of a trend change.
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