Cryptocurrency Analysis: Altcoins Slide as Bitcoin Rally Pauses
All of the major coins are trading lower today after a bearish weekend, as altcoins are still underperforming Bitcoin, with the market leader holding up well near its all-time high. BTC is back below the $6000 level after surpassing our long-term target last week, but it’s still well within the rising trend, despite the overbought long-term picture.
The coin found support near the $5800 level, although it spiked as low as $5600 in the bearish environment. While we advise investors to wait until the next correction with new positions, traders could still bet on a rally to new highs as long as BTC remains in an uptrend. Support levels below $5800 are found near $5400 and $5000.
BTC/USD, 4-Hour Chart Analysis
Altcoins are trading well below their respective all-time highs, as capital has been flowing towards Bitcoin in recent weeks, but most of the major coins are still in long-term uptrends, with only ETC looking suspiciously week. Dash is the best performing currency of the day, as it surged off the $265 support, while Monero, Litecoin, and NEO are also among the relatively strong coins. Ethereum hit a one-month low below the $285 support, while Ethereum Classic, Ripple, and IOTA are all performing weaker than the broad market. Let’s see the short-term charts of the altcoins.
ETH/USD, 4-Hour Chart Analysis
Ethereum broke below $300 during the weekend, and it spiked below the $285 support today in early trading, getting closer to the crucial long-term trendline that is currently found at $270. The short-term picture is now neutral, while the long-term setup is still positive. Below $285, support is found at $250 and $235, while resistance is ahead at $315 and $330.
LTC/USD, Daily Chart Analysis
Litecoin held up above last week’s lows and it is still trading just below the $56 level, showing relative strength compared to the other altcoins. The long-term picture remains bullish, and we expect the coin to outperform the market even if Bitcoin enters a deeper correction. Key support levels are still found near $51, and $44, while further resistance is found at $64.
DASH/USD, 4-Hour Chart Analysis
Dash tested the $265 support before rebounding strongly today, but the coin remains well below the key $300 level, and the short-term picture is still neutral. We still expect a break-out from the current lengthy correction in the coming weeks, but further range trading is likely before that. Resistance zones are ahead near $330 and $360.
XRP/USD, 4-Hour Chart Analysis
XRP remains in a sharp short-term downtrend, and the coin violated the $0.195 level today, further adding to the selling pressure. While short-term traders are advised to wait with opening new positions, the long-term picture remains positive, and investors could add to their positions here. Strong resistance is still near $0.22, and $0.26, with support found near $18 and $16.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic continues to show weakness and the break-down below $11 during the weekend points to a likely test of the $9 support. We still urge short-term traders to wait with opening new positions, with key resistance levels ahead at $12.50 and around the $13.50 level.
XMR/USD, 4-Hour Chart Analysis
Monero is holding up above the crucial support zone around $80, despite a brief spike lower today in early trading, and the coin remains among the relatively strong majors both short- and long-term. The currency faces strong resistance at $100, and while we expect further sideways trading before a move higher, the long-term prospects are still encouraging. Support below the $80 level is found around $68, while further resistance is ahead at $125.
NEO/USDT, 4-Hour Chart Analysis
NEO remains relatively quiet compared to its recent volatile period, and the coin is holding up above the $27 level today, within the short-term trading range. The long-term picture is still favorable, and a rally towards $34 and $40 is expected in the coming weeks, with strong support at $25 and primary resistance ahead at $30.
IOTA/USD, 4-Hour Chart Analysis
IOTA is still trading near the crucial $0.35 support, well within the declining trend. The short-term picture remains bearish but the long-term picture is still bullish, but the coin needs to stay above primary support to avoid a bearish trend change. Resistance zones are ahead between $0.45 and $0.48, and near the $0.56 level.
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