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Analysis

Long-Term Cryptocurrency Analysis: Correction Continues on Chinese ICO Crackdown

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The major coins are sharply lower this weekend as the two new Chinese regulatory proposals that surfaced spread uncertainty in the segment during the week. The ICO ban proposal on Monday and the following alleged exchange ban delivered a double blow to the overbought market that we have already been expecting to correct. BTC is showing relative strength amid the volatile moves, but the rest of the majors are 30+% off their highs. Ethereum is back below $300, and it is testing the $285 support yet again after the strong mid-week bounce. The coin already almost fully cleared the overbought readings regarding the daily chart, but we still expect a move towards the $235-$250 zone.

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ETH/USD, Daily Chart Analysis

Litecoin, Monero, Dash, are all trading near important support/resistance levels after their huge gains, and all three coins look prone to correct more. NEO has been hit the hardest by the Chinese news, and it is hovering around the $22 support this weekend after trading at $16 and $35 on the course of the week. Ripple and Ethereum Classic remain similar technical positions, after the break-out attempts that were interrupted by the broad correction. As the bearish move already covered significant ground in terms of percentages, let’s see how it changed the long-term view for the majors.

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Bitcoin

BTC/USD, Daily Chart Analysis

BTC is holding up above the $4000 level for now, with a 20% loss top-to-bottom so far. The overbought readings of the MACD indicator are getting cleared, but we still expect the correction to continue in the coming week, and investors should still wait with opening new positions. Key support levels are at $3800, $3500, and $3150 while resistance is ahead at $4400.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin turned lower off the upper boundary of the long-term trend channel, and it’s now testing the $64 support/resistance level again. As the coin is still deeply in overbought territory, more correction should follow in the coming weeks, with targets at $60, $56, and $51, with the $56 line being the most likely candidate, as the 61.8% Fibonacci retracement is also near the area.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple is trading near the $0.20 level holding on to some of its break-out gains, despite the deep correction. The coin is neutral regarding the long-term picture, and that could point to a period of outperformance during the current move lower. Investors could add to their positions on the short-term dips, with support near $0.18, and $0.16.

Dash

DASH/USD, Daily Chart Analysis

Dash is testing the $300 support once again, and the coin remains overbought, suggesting more downside movement in the coming week. The currency turned lower off the $360 resistance, and now it’s probably headed towards the support at $265, with the test of the prior high near $220 also being possible.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic broke below crucial support today in early trading, and that means that it re-entered its prior trading range. The long-term base around the $14 level should hold the coin during the current move, giving investors the opportunity to add to their holdings. Above $16 strong resistance is at $18 and near the all-time high at $23.

Monero

XMR/USD, Daily Chart Analysis

Monero is trading near the $100 level for the second time this week, and we expect the coin to move below that zone in the coming days. The MACD remains bearish after turning lower in overbought territory. XMR has support at $80 and $68, while resistance is still ahead at $125 and above that near $150.

How to Use These Charts?

As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”

Here is a reminder of some of the possible strategies once again:

  • Buy and hold, without caring about day-to-day (or even month-month) fluctuations
  • Buy and hold a core position and add on the major dips; a very powerful strategy
  • Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
  • Try to catch major turning points to reduce and “re-boost” your position
  • Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

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Analysis

XRP Looking to Make a Significant Rally

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The XRP/USD pair went into a deep correction after hitting 0.29490 a month ago. It nosedived to the major support level of 0.19052. The pair consolidated for a few weeks which gave the market the legs to test resistance at 0.22924.

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Technical indicators show that the pair was ready to breach its immediate resistance, which it did this morning. Now that resistance has broke at 0.22924, it’s time to buy. This successful breakout will take the pair to 0.23997 first and 0.26563 next before hitting the target of 0.26796 which is coincidentally a major resistance level.

Technical indicators hint that the market would most likely be overbought by the time it hits 0.26796. Should it respect the major resistance level, the likelihood of the market turning extremely bearish increases. Therefore, it is recommended to closely watch your trail stops to preserve your gains.  

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Summary of Strategy

Buy: As close to 0.22924

Support: 0.22224 and 0.20081

Target: 0.26796

Stop: If the market breaches 0.20081 as next reliable support is 0.19052

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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Analysis

Technical Analysis: Ripple Breaks Out as Bitcoin Tests Highs

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Cryptocurrencies are having another bullish session as the total value of the market surged to a new all-time high near $225 billion, with the help of the rally in BTC and Ripple, and despite the drop in the value of Bitcoin Cash. The most valuable coin its record high yet again after the brief but steep weekend correction, despite the still overbought long-term picture. We still urge traders and investors to wait for a deeper correction before entering new positions here, with support levels found at $7000, $6700, and $6000.

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BTC/USD, 4-Hour Chart Analysis

Ripple has been the other main mover of the day so far, as the coin skyrocketed on huge volume and breached the $0.26 level before turning lower and stabilizing near $0.23. The coin triggered a short-term buy signal by moving above $0.2250 and it remains bullish on both time-frames, despite the pull-back, with another major target level ahead at $0.30.

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Ripple/USD, 4-Hour Chart Analysis

The other majors are little changed expect IOTA, which further added to yesterday’s gains and reached overbought readings, while Ethereum Classic and Dash continue to drift lower in short-term correction patterns. Let’s see the detailed analysis of the short-term charts.

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