Cryptocurrency Analysis: Market Hits New Record at $200 Billion as Altcoins Bounce Back
The segment hit a historic mark today as the altcoin rally and Bitcoin’s another record day pushed the total market cap of the coins above $200 billion for the first time ever. BTC and Bitcoin Cash was still in the center of attention, but with the strong rebound especially in Ripple and Ethereum Classic, altcoins got in the spotlight as well. Bitcoin’s dominance actually declined during the session, but it still stands at 61%, with the most valuable coin’s market cap hitting a new high above the $120 billion level.
The coin’s price touched $7500 after yesterday’s excessive volatility, before retreating below the Thursday’s high in the second half of the session. Short-term support now stands at $6700, while below that the $6000, $5800, and $5400 levels provide substantial support. With the short- and long-term picture being dangerously overbought, traders and investors should wait for the next correction before entering new positions, as the risk of a major drawdown is high.
All the most traded coins registered gains today, and the crucial support levels that have been tested yesterday held up well despite the negative sentiment. We expect a gradual return of capital to altcoins, with encouraging technical setups in several of the largest currencies. Litecoin, Monero, and Dash are still among the most promising majors, while IOTA and ETC continue to lag the market from a long-term perspective. Let’s see how the short-term charts look after this busy week.
ETH/USD, 4-Hour Chart Analysis
Ethereum bounced back from the key convergence zone near the $285 price level, and the coin is trading back at the $300 mark, the mid-point of the long-standing trading range that dominated the market for several weeks. We still expect a bullish move out of the range, with targets at $330, $350, and $380.
LTC/USD, Daily Chart Analysis
Litecoin recovered all of its recent losses, as the coin rallied back towards the $56 level, staying inside the bullish consolidation pattern that we have been monitoring. The coin remains among the least volatile majors, and trading volumes also have been muted, but an increase in activity is expected after LTC moves out of the consolidation pattern. Support is found at $53, $51, and $44 while resistance is ahead at $64 and $75.
DASH/USD, 4-Hour Chart Analysis
Dash also got back above the key $265 level and remained inside the rising long-term trend, despite the increase in volatility, and the declining short-term pattern. The coin faces strong resistance near $300 with another level just above the current price at $280, but we expect the long-term trend to resume following the consolidation, with initial targets at $330 and $360.
XRP/USD, 4-Hour Chart Analysis
Ripple had an extremely volatile session, as it spiked as high as the key resistance zone around the $0.2250 level before retreating below the $0.21 level. The coin is still stuck in a bearish short-term pattern but a durable move above $0.21 would trigger a buy signal. Primary support is now found just below $0.20, with further levels at $0.18 and $0.16 while resistance is at $0.24 and $0.26.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is trading right at the $11 level, the where the declining short-term trend and the primary resistance level are converging, and despite today’s strong showing, the coin remains on a neutral signal. Traders should wait for a break-out before entering new positions, with targets at $12, around the $13.50 level and near $16.
XMR/USD, 4-Hour Chart Analysis
The market of Monero remained very quiet, relative to the other major coins as XMR is still stuck in a trading range between $80 and $100. Primary resistance is expected in the coming weeks, as the long-term picture remains encouraging. Targets for a break-out are found at $125 and near $125, while further support is at $68.
NEO/USDT, 4-Hour Chart Analysis
NEO returned to volatile trading after an extended range trading period, as Thursday’s decline hit the coin hard, but the rebound was also strong, taking the currency back to the crucial $27 level. The correction pattern that developed after the post-crash rally is still intact but we expect move n the coming weeks. With target levels at $34 and $40.
IOTA/USD, 4-Hour Chart Analysis
IOTA recovered above the key $0.35 level, as the massive support zone held the coin yet again, but the declining trend remains intact for now. Investors could still add to their holdings here but traders are advised to wait for a trend change before opening new positions. Key resistance levels are still ahead at $0.42 and between $0.45 and $0.48.
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