Long-Term Cryptocurrency Analysis: Correction Continues on Chinese ICO Crackdown | Hacked: Hacking Finance
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Long-Term Cryptocurrency Analysis: Correction Continues on Chinese ICO Crackdown

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

Introduction

This article was posted on Sunday, 12:23, UTC.

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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Mate Cser

Mate Cser

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.

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