Connect with us

Analysis

Long-Term Cryptocurrency Analysis: Ethereum Spikes to $470 with New Highs Across the Board

Published

on

Everyone who called Bitcoin and cryptocurrencies a bubble has been proven wrong, or are at least suffering losses, so far, as the segment didn’t look back this and added $45 billion in capitalization. The rally was mostly fueled by altcoins this time around, with several of the majors hitting sizable new record highs. That said, week Bitcoin also held up well near its recent high, and it is still trending higher this weekend, defying the stretched long-term picture.

// -- Discuss and ask questions in our community on Workplace.

Ethereum’s break-out to new highs was the most important move of the week, with the second largest coin leaving behind a multi-month consolidation formation, and gained more than 30% during the period. The token still has room to rally according to the long-term momentum indicators, and a test of the $500 level seems very likely in the current leg higher, with further major long-term targets near $575 and $685.

ETH/USD, Daily Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Dash has been the other star of the week, and the coin took over Litecoin in the list of the most valuable coins while completing its range extension move. The currency hit our final target at $615, and now we advise long-term investors to only hold their core positions, as Dash joined Bitcoin and IOTA in being severely overbought. That said, further upside is possible in the coin’s market, but correction risk is now high, and the risk/reward ratio is not favorable anymore. Support levels are found near $540, $500, $470, and $411.

DASH/USD, Daily Chart Analysis

The rest of the altcoins are also mostly in the latter stages of the cycle and investors and traders should start to turn more defensive, as the risks of a correlated correction are rising. Monero and Ethereum Classic are among the more overbought majors, while Ripple, and Litecoin

Bitcoin

BTC/USD, Daily Chart Analysis

BTC is still in a short-term uptrend while the long-term technical picture remains, unchanged with stretched momentum readings, and high correction risk. While the rally could still continue, investors should remain patient and wait for more favorable conditions to add to their holdings. Key support levels are now found at $7700, $7000, and $6700.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin hit yet another target level as it continued to rally this week, and it’s now trading near the $85vlvel after leaving behind the $82.50 resistance. The coin is now on a neutral long-term signal, and as although we expect more gains from the Digital Silver, the current setup is not optimal for opening new investment positions. Major support levels are found at $75 and while the all-time highs just below $100 are ahead as resistance.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple has been edging higher in the bullish environment, but it still failed to show strong momentum, with the key $0.26 level still ahead as a major obstacle. The long-term momentum is still close to neutral, and the prospects of the coin are encouraging, but the recent relative weakness is slightly worrying.  Support is still around $0.2250, just below $0.20, and at $0.18, while further resistance above $0.26 is found at $0.30.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic is breaking out of a choppy consolidation zone that formed near $18, and it got very close to the all-time high at $23 today. While the long-term picture is now stretched, a rally to at least marginal new highs is likely, but investors should use the strength to exit some of their positions after the strong rally, and wait for the next correction to add to their positions.

Monero

XMR/USD, Daily Chart Analysis

Monero is trading at fresh all-time highs after a successful move above $150, and although the long-term MACD is getting overbought, there is still room for further gains. Major targets are ahead at $180 and near $200, with support levels at $160, $150, and $125.

IOTA

IOTA/USD, Daily Chart Analysis

IOTA entered a volatile correction after reaching overbought readings, and spiked below the $0.70 level of the top just below $1. While the coin is still stretched regarding the daily momentum, a rally to test the record high at $1.1 is possible, but investors should wait for at least neutral readings to add to their holdings after the stellar rally. Key support levels are found at $0.75, $0.64, and near $0.56.

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

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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

Published

on

Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

// -- Discuss and ask questions in our community on Workplace.

XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

Published

on

Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

// -- Discuss and ask questions in our community on Workplace.

With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

Published

on

Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

// -- Discuss and ask questions in our community on Workplace.

XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending