Long-Term Cryptocurrency Analysis: Bumpy Road Ahead Despite Strong Rally

The crypto-segment finally left behind an era of severe altcoin weakness, right when Ethereum reached a make-or-break level, the zone from which its winter breakout initiated. Although the second largest was down by more than 75% of its all-time high, the secular bullish trend is still intact, as the downtrend only erased a bit more than 1 month of gains, similarly to most of the majors.

ETH/USD, Daily Chart Analysis

ETH led the market higher this week, as the coin took off from its lows and started to outperform BTC after a long period of relative weakness. The rally was gradual at first, but on Thursday the whole segment exploded higher together with BTC and altcoins continued to show strength amid the surge.

To be clear, the broad declining trend is still intact, and the jury is still out whether or not we will see an advance that challenges the January highs. The coin provided a bullish long-term signal in oversold territory, and long-term investors could still add to their holdings on the short-term pullbacks, with support found at $450, $400, and $360, while key resistance above $500 is ahead near $626 and $725.

BTC/USD, Daily Chart Analysis

Bitcoin surged past the $7650 and $8000 levels in the matter of hours, but the move is still not sufficient for a trend change, despite the long period of relative strength, as the broad declining trendline is still ahead as resistance.

BTC held up above the February low, likely forming a base formation, and long-term investors could still add to their holdings here, although further consolidation is possible. Crucial resistance is ahead between $9000-$9200 and near $10,000 and $11,300, with further support found in the $6150-$6250.


ETH/USD, Daily Chart Analysis

Litecoin has been lagging the broader market this week, despite holding up above the February lows and showing long-term relative strength. The coin still faces several strong resistance levels, and the broad triangle pattern remains dominant. As the currency is oversold, and a base is likely forming between $100 and $125, long-term investors could still add to their holdings on the short-term pullbacks. Resistance is ahead at $140, $150 and in the key $170-$180 zone while crucial support is at $100.


DASH/USD, 4-Hour Chart Analysis

Dash has been lagging the leaders in recent days as well, still being stuck well below $400 after briefly getting close to the key level. The long-term momentum is showing a slightly bullish picture, although the advance is far from being convincing. That said, given the still oversold setup, long-term investors could still add to their holdings on the pullbacks. Further strong resistance above $400 is ahead at $435, $500, and between $575 and $600, while primary upport is at $300


XRP/USD, 4-Hour Chart Analysis

XRP joined Ethereum in outperforming the market, as the third largest coin exploded higher on Thursday, reaching all the way up to the $0.68 level, for a 50% gain off the bottom before entering a consolidation phase. The currency broke out from the declining long-term trend, but with still several strong resistance levels ahead, further volatile sings are expected. Further resistance is ahead at $0.85 and $1, while support is found at $0.57, $0.53, and $0.42.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is among the laggards of the rally, as the $16 resistance level stopped the advance, with the broadest declining trendline still being ahead. The currency is still oversold from a long-term perspective, and long-term investors could add to their holdings here, but traders should be cautious as a new uptrend is still no established. Primary support is at $14.50 while resistance is ahead at $18, $20 and around $23.


XMR/USD, 4-Hour Chart Analysis

Monero has likely built a base in the $150-$175 zone, and although it is relatively weak short-term, the long-term picture is bullish, and investors could continue to accumulate the coin. Momentum is in oversold territory, with strong resistance levels ahead at $200, $240, and $280.


NEO/USDT, 4-Hour Chart Analysis

NEO is among the strongest majors from a short-term perspective, holding on to most if its recent gains, and hovering around the $64 resistance, still within the broad declining trend channel. Momentum is bullish, but strong resistance zones are ahead near $80 and $100, with the $50 level providing primarhy support. Both traders and investors could hold on to their positions and look for entry points on the short-term pullbacks.


IOTA/USD, 4-Hour Chart Analysis

IOTA broke out of the declining trend, still showing encouraging strength, even as the $1.50 level stopped the advance. Both the short- and long-term setup switched to bullish thanks to the breakout, and a move above $1.50 would confirm the new short-term uptrend. Further key resistance is ahead at $1.9 and between $2.2 and $2.35, while support is found near $1.2, $1.1, and $1.1.

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Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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.