Cryptocurrency Update: Majors at Key Price Levels After Weekend Crash
Ethereum recovered well after the Sunday morning crash that took the coin down to the $135 price level, with Bitcoin also bouncing higher, and the other majors following the two dominant currencies as well. ETH’s 20% rally means that the token is just below the previous low, at $172, which triggered the sell-off and liquidation during the weekend.
ETH/USD, 4-Hour Chart Analysis
The currency dipped below the level and caused a strong wave of forced selling in the majors and the smaller coins, but most currencies are well off their lows, and getting close to important short-term resistance levels. While the trend is still clearly negative, a rally above the $175, could mark an important bottom in the coins, as the long-term picture is getting oversold, and Ethereum fell as much as 66% while BTC is also after a 40% correction. Let’s see how the majors are holding up after the 50% dip in the value of the crypto-market.
BTC/USD, 4-Hour Analysis
Bitcoin is right at the $2000 level following the bounce off the lows, which marks the upper boundary of the base formation that we monitored as in recent weeks. A push above that level would point to a test of the $2150 resistance, which would be an important step in the long-term bottoming process, although the declining trend remains intact.
LTC/USD, 4-Hour Chart Analysis
Litecoin was among the strongest coins during the recent correction period, and now it’s still right at the long-term rising trendline. The short-term correction pattern is still dominant, but a move above $44 would trigger a buy signal. The MACD indicator is already after a bullish cross but short-term traders are still advised to wait with new positions until a confirmation of the trend change.
DASH/USD, 4-Hour Chart Analysis
Dash also tested the rising long-term trend while staying well inside the declining short-term trend following the bounce. Dash faces storng resistance at the $150 level, and it trades right at the crucial support zone around $135 that needs to hold to keep the coin in a bullish pattern, after the spike below it during Sunday’s decline.
XRP/USD, 4-Hour Chart Analysis
Ripple quickly recovered above the previous low after the spike lower but it remains well below the line-in-the-sand 0.175 level, with the two-month long correction pattern still being dominant. The coin remains far from a buy signal, but the forming base pattern still points to a coming test of the declining trendline, which is currently at 0.235.
ETC/USD, 4-Hour Chart Analysis
ETC was the strongest major during Ethereum’s crash, staying above the prior correction low, and bouncing back above the $14.50 resistance, close to the declining short-term trendline. The token is close to buy signal this morning and could be a leader in the coming days if it breaks out of the short-term trend and remains above $15.
XMR/USD, Daily Chart Analysis
The declining short-term trend for Monero remains strong, as the currency remains among the weakest majors. The long-term support at $32 is int he focus, and the token should recover above that to keep the developing base pattern between $32 and $37 intact. The coin might still test the $25 level before moving higher, especially if Ethereum and Bitcoin fail to remain above the $175 and $2000 level.
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