Cryptocurrency Update: Coins Settle Down after Storm as Selling Pressure Weakens
The major coins bounced back from yesterday’s decline and although the rise in Bitcoin and Ethereum is muted, some of the most valuable cryptocurrencies are showing positive divergence. The selling pressure that dominated the recent month during the correction has weakened recently, and the small cap crash of the weekend might have marked the last leg lower in the move.
The strong rally in Ethereum Classic is the move of the day so far, but all of the majors show signs of healing, although most if the coins remain in short-term downtrends. Volatility is encouragingly low, and as the long-term picture gets more constructive, a sustainable rally is more and more likely. Let’s see how the majors stand after the bounce.
BTC/USD, Daily Chart Analysis
Bitcoin recovered quickly after the decline of the weekend as it remained relatively strong throughout the sell-off. While the short-term downtrend remains intact in the currency, a move above $2500 would trigger a new long-term buy signal.
ETH/USD, 4-Hour Chart Analysis
As we pointed out yesterday in early trading “Ethereum got smashed below $200 in what might have been the last panic move of the long-term correction that started almost a month ago”. ETH is still in a declining trend but the current bounce is expected to carry the token stuck to the $235 or the $250 level and a long-term bottom also might be in given the long-term picture.
LTC/USD, 4-Hour Chart Analysis
Litecoin is still acting bullish, trading in a bullish consolidation pattern below its recent all-time high. The coin remains below the short-term declining trendline and the $50 level, and while the long-term picture is less constructive than the other majors after the recent break-out, another leg higher towards the range projection target at near the $58-$60 range is still likely before a significant consolidation period.
DASH/USD, 4-Hour Chart Analysis
Dash is still trading below the short-term support/resistance level near $190, in a similar pattern as Litecoin, with the all-time high at $220 not far away from the current levels. A move above the current high towards the long-term Fibonacci target just above the $250 level is still likely, but more sideways action is possible as BTC and ETH are still below their declining trendlines.
XRP/USD, 4-Hour Chart Analysis
Ripple is back in its long-term consolidation range after the spike below the lower boundary of the zone during the weekend correction. The coin faces strong resistance near the $0.2150 level and as XRP is still well below the declining long-term trendline, short-term traders should still wait with new positions.
ETC/USD, 4-Hour Chart Analysis
ETC surged higher today, breaking out from its declining short-term trend, and catching up to the other outperforming majors, underlining the positive divergences in the sector. The coin is now on a new buy signal above the $16 level, and a move towards the prior high at $23 is now likely in the coming period.
Featured image from Shutterstock