The scary decline that started on Friday didn’t cause major technical damage in the most important coins, as the prior correction lows mostly held so far. The most watched Bitcoin stayed above the crucial $4000 level, and it’s now back near $4200 thanks to today’s modest rally. With the long-term pressures still being generally bearish, we expect more corrective price action in the most valuable coin, but until the primary support level is intact the short-term picture remains neutral. Should the Chinese ban on crypt trading prove legit, the coin might be headed towards the $3800 and $3500 support levels, with another strong zone below those at $3150.
BTC/USD, 4-Hour Chart Analysis
The other majors are in a slightly worse position, as BCT was also supported by safe haven buying in connection with North Korea, and the likes of Ethereum and NEO were also more affected by the earlier news on the Chinese ICO-ban. The small gains today didn’t change the short-term trends, and the recently surging currencies, Dash, Monero, and Litecoin are still overbought, while the more neutral coins like Ripple and ETC still look more promising for the coming weeks. Overall, the segment lost 20% of its market value, which currently stands at $145 million, and the coming week might be crucial to gauge the extent of the current correction. Let’s see how the details
ETH/USD, 4-Hour Chart Analysis
ETH didn’t break below the key $285 level following Friday’s flash crash, but it remains stuck below $300, 30% off its recent highs. The coin is getting close to neutral regarding the long-term picture, but we expect more volatility in the coming weeks, with a likely test of the $235-$250 support zone before the next sustained move higher. Resistance is ahead near $330, at $350, and near the $3890 level.
LTC/USD, 4-Hour Chart Analysis
Litecoin bounced off the $64 level yet again during the weekend, and it remains in a short-term correction pattern, around the mid-point of the rising long-term trend channel. The coin is still expected to dip below $64 in during the correction, with the $56 and $51 levels providing strong support. Resistance is ahead at $75 and $80, with the all-time high above those levels near $96.
DASH/USD, 4-Hour Chart Analysis
Dash is holding above the $300 support level in the face of the overbought momentum readings, and the coin is still well inside its long-term rising trend. The crucial $360 level is ahead as primary resistance, while below $300, further support is found at $265 and near $220. We still expect a dip below $300 in the coming weeks, so long-term investors should still wait with opening new positions.
XRP/USD, 4-Hour Chart Analysis
XRP recovered almost all of its flash-crash losses, and its trading right at the $0.22 level again, proving relatively strong amid the broad correction. We still expect the coin to outperform the segment in the coming period, with the long-term picture still being neutral, and with strong support just below $0.20, at $0.18. key resistance levels are ahead at $0.26 and near the $0.30 level.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is back in its long-standing trading range after Friday’s spike lower, and the coin is once again lagging the broader market after a short period of strength. That said the long-term picture remains encouraging, and the current price level still seems attractive from a long-term perspective. Primary resistance is now at $16, with further levels at $18, and above that near the all-time highs at $23, while support is at $14.50 and around $13.50.
XMR/USD, 4-Hour Chart Analysis
Monero remains in similar technical positions as Dash, also being overbought after a huge rally. The coin held above the $100 level during the weekend, but it’s well off the $125 resistance. We still expect the currency to dip below $100 in the coming weeks and the $80 and $72 levels are the most likely targets for the move, with further support at $58.
NEO/USDT, 4-Hour Chart Analysis
NEO is trading just above the $22 level after settling down following a very volatile week. The coin faces short-term resistance at $25, and with it being a good proxy for the effects of the Chinese crackdown, traders should pay close attention to the moves in the coming days. The downtrend remains intact in the currency, although the long-term picture is neutral after the more than 60% decline. Below $22, the coin has support at $16.50 while resistance is ahead near $30.
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