Cryptocurrency Analysis: Altcoins Surge as Bitcoin Forks Again

While the total value of the crypto segment still hovering around $170 billion, the distribution of the market share of the major coins is far from being stable. Bitcoin has been gaining grounding recent weeks, as altcoins gradually lost value, but today the tide has turned, in part because of the Bitcoin Gold fork.

The most valuable coin that has hit our long-term target last week, is still overbought from an investment standpoint, but remains inside a rising short-term trend, with crucial support at $5400. A rally to new all-time highs is still possible before a deeper correction, but we still advise investors to wait before entering new positions until the overbought reading is cleared.

BTC/USD, 4-Hour Chart Analysis

IOTA and NEO led the charge in altcoins, scoring double-digit gains with especially the former coin erasing its latest losses, rallying up towards its most important support/resistance zone with a 30% up day. The rest of the majors are up between 5-10%, with the recently battered Ripple recovering the slightly more.  Let’s see the detailed analysis of the altcoin charts.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum is back in the lengthy trading range between $300 and $315 after today’s rally but it failed to stay above the upper boundary of the pattern so far. The long-term uptrend is still clearly intact, but a break-out above $315 would be needed for a renewed short-term buy signal. We still expect an advance above the $330-$350 zone in the coming weeks, with key support found at $285.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin respected last week’s low before rallying back above the $56 level together with the broader market. The coin remains inside a short-term consolidation pattern, still looking bullish on both the short- and long-term charts. The currency will likely face strong resistance near the $64 level, and more range bound trading is likely before a durable move higher, with support levels now found at $53, 51, and $44.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash quickly got back to the $300 level, but it remains clearly inside the correction pattern that has been dominating the coin’s market since the end of August. The currency is still in a healthy long-term uptrend, but just like Litecoin, it could be in for further consolidation before the next leg higher. Long-term support is found at $265, while resistance zones are ahead near $330 and $360.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP quickly retraced three days of losses today, but it remains below the key resistance zone around the $0.22 level. The coin is still in a long-term uptrend but further bullish price action is needed for a new short-term buy signal. Strong resistance above the primary zone is at $0.26, and near $0.30, with support found between $0.1950 and $0.20, near $18, and at $16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is still the weakest major form a technical perspective and today’s rally didn’t change the setup, as the $11 level capped the advance. The coin is inside a short-term downtrend, and traders should still wait with opening new positions, with key support at $9 while resistance above $11 found at $12.50 and around $13.50.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero continues to show relative strength, while its market is the most stable among the major altcoins. The coin is still trading within the dominant short-term range, below the crucial $100 level, but both the short- and long-term picture remains bullish. Above the $125 level, strong resistance is ahead at $125, while support is near $80 and $68.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO gained bullish momentum amid the altcoin rally after showing relative strength during the recent downward drift.  The coin surged above the crucial $30 level but the move near last week’s highs, keeping the coin in its short-term trading range. The long-term picture is still bullish and we expect a rally towards the $40 level with strong support below $30 found at $27 and $25.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is testing the $0.45-$0.48 resistance after today’s violent rally, and with the long-term picture still being bullish a short-term trend change is likely in the coming week. The coin respected the long-term support near $0.35, keeping the rising trend intact, with target zones ahead at $0.56 and $0.64.

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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.