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Analysis

Long-Term Cryptocurrency Analysis: Dash Breaks Out and Tops $300 as Bitcoin Enters Correction

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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.

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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.

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Bitcoin

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.

Ethereum

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.

Litecoin

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.

Ripple

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.

Ethereum Classic

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.

Monero

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)”

Featured image from Shutterstock

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2 Comments

2 Comments

  1. DroidBender

    August 19, 2017 at 10:51 pm

    The ETH/USD chart is incorrect.

  2. Chris G

    August 20, 2017 at 2:31 am

    looks like the eth/usd chart is a repeat of the btc/usd chart …

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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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