Long-Term Cryptocurrency Analysis: Dash Breaks Out and Tops $300 as Bitcoin Enters Correction
It was a great week for the patient Dash bulls, as the currency that has been trading in a broad consolidation pattern finally broke out to new highs. While the coin was relatively strong for a long-time, it failed to gather strong bullish momentum. This week, the correction ended with a vengeance, and Dash first hit prior range projection target at $260, and then surged above $300 today. While long-term investors shouldn’t take on new positions here, the short-term trend is clearly positive, and there is room for more upside, as the long-term momentum is still not overbought.
DASH/USD, Daily Chart Analysis
Bitcoin hit a new all-time high near $4500, and then turned lower from a severely overbought position, dragging the rest of the market slightly lower, while Bitcoin Cash skyrocketed higher nearing the $1000 level, and the 25% of its forked peer in market cap. The other majors were mixed, with the long-term picture remaining basically unchanged for most of the coins. Ripple and Ethereum Classic are still notably lagging the market, while Ethereum, LItecoin, and Monero continue to trade sideways, still with good long-term prospects. Let’s see how the daily charts look, one month after the end of the deep crypto-correction.
BTC/USD, Daily Chart Analysis
BTC surged through our range projection target at $4200 as the coin got extremely overbought following the epic rally after July correction low, and the Bitcoin Cash fork earlier this month. The currency turned lower off the $4500 level and it’s currently trading near $4000, but the long-term picture remains overbought, pointing to more downside. Long-term investors should stay away from new positions now, with possible targets for the correction near $3450, $3150, and just below $2900.
ETH/USD, Daily Chart Analysis
Ethereum dipped lower in the beginning of the week, together with Bitcoin, but it recovered to the $300 level that has been dominating trading recently. The coin is still in a short-term uptrend, while the MACD indicator remains bullish. Support levels are found near $285 and $250 while primary resistance is ahead near $330.
LTC/USD, Daily Chart Analysis
Litecoin is trading in a long-term trading range since hitting a high in July, and the crucial $44 support/resistance level remains in focus. The MACD is in neutral territory thank to the sideways price action, and we expect a move above $50 in the coming weeks, as the long-term picture remains bullish.
XRP/USDT, Daily Chart Analysis
Ripple continues to lag the other majors, with the coin drifting lower following the declining long-term trendline. The currency broke below the $0.16 level, proving the short-term weakness again. While the long-term momentum is still neutral, the coin needs to hold above the $0.13 support, to maintain the long term uptrend. That said, investors could still add to their positions here, as another leg higher is more likely.
ETC/USD, Daily Chart Analysis
Ethereum Classic is also testing the long-term support levels like Ripple, as the correction pattern remains intact in the coin as well. The lower boundary of the forming base pattern is holding for now, and the long-term picture is still constructive despite the deep correction. Investors could add to their positions here, while short-term traders should still wait with new trades. The $14, $16, and $18 levels are ahead as resistance.
XMR/USD, Daily Chart Analysis
Monero has been trading in a bullish consolidation pattern after its strong rally, and it held up ell amid the broad correction in the second half of the week. The long-term picture remains encouraging, and a rally to new highs above $58 is likely in the coming days, even with the strong resistance ahead. The long-term MACD is still not overbought providing further room for the rally.
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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