Long-Term Cryptocurrency Analysis: Rally Continues as Dash and Monero Lead the Way

The cryptocurrency market already provided huge moves once again this weekend, as Dash and Monero surged to new all-time highs in the otherwise low volume environment. Monero touched $150, while Dash topped $400 on the way, as XMR and Dash are now up by 400% and 200% since the July correction lows. Apart from the two coins, Ripple has been the most active major of the week, first doubling in value following a break-out, then falling 30% in the second half of the period, still being above last week’s levels. The currency is near the line-in-the sand support/resistance zone near $0.22, and it would be crucial to hold above that level to keep the rising trend intact.

XRP/USDT, Daily Chart Analysis

Bitcoin also had a volatile week, with a steep drop and a quick recovery above the $4000 level near its all-time high. Ethereum, LItecoin, NEM, and Ethereum Classic are little changed since last week compared to their peers, with ETC still lagging the other majors, despite a break-out from its declining trend. NEO concluded its short-term correction during the week, and it rallied back to the $40 level after bottoming out near $30. All in all, the market is still bullish, but the overall capitalization of the coins is stuck near $155 billion, suggesting that a broader correction might be in the works, following the BTC-led surge.

Bitcoin

BTC/USD, Daily Chart Analysis

BTC touched $3600 during its Monday correction, but it’s now back near $4400, just below the all-time high. The coin is still overbought after the almost 150% rally in one month, and we still expect a deeper correction in the coming weeks. That said, another push higher is still possible, but only short-term traders should enter new positions here, as investors should wait until the overbought reading is cleared.

Ethereum

ETH/USD, Daily Chart Analysis

Ethereum is still struggling to stay above the crucial $330 level, although the short-term uptrend remains intact, and the long-term momentum is not in overbought territory yet. With the looming Metropolis update, the coin could turn volatile in the coming period, but we still expect a rally to at least $380. Strong support is found at $300 and $285, while the all-time are ahead near $400.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin briefly traded on a new high this week, but it failed to sustain the break-out so far, and now it’s trading just above $50. The MACD indicator is bullish in neutral territory, giving ample space for the currency to rally. The coin remains above the prior triangle consolidation pattern, also suggesting a move towards $60 in the coming period. Strong support is found at $46, at $44 and near $38 with primary resistance ahead around $57.

Dash

DASH/USD, Daily Chart Analysis

Dash is on the move for the second weekend in a row, this time posting a new high near $400. The coin continues to be overbought, and now we expect an imminent correction. That said, the short-term uptrend is still intact but long-term investors shouldn’t open new positions here. Key support levels are found at $300, and $265.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic experienced a weak break-out attempt from its dominant declining trend, but it failed to hold above the $16 level suggesting more sideways price action. A move above $16 would open up the way to $18, and the all-time high at $23. With the long-term momentum still being neutral, the key support zone around $14 should hold the price of the currency.

Monero

XMR/USD, Daily Chart Analysis

Monero surged above the $100 level in late trading yesterday, and surpassed all of the long-term targets to get close to $150. The move triggered a long-term sell signal, and we advise long-term investors to wait with opening new positions until the next major correction. The steep short-term uptrend is intact with support levels at $100, $80, and $68.

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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Author:
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.