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.
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.
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.
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/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.
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.
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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