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.

Ethereum

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.

Litecoin

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

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.

Ripple

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.

Ethereum Classic

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.

Monero

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

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

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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Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.