Long-Term Cryptocurrency Analysis: Selling Pressure Persists as Altcoins Still Weigh
Last week’s strong bounce faded away towards the end of the weekend in the segment, as the largest altcoins failed to show resilience, while Bitcoin’s relative strength wasn’t enough to hold up the market.
The leaders of last week’s rally are also under pressure, so the short-term picture took a bearish turn, but for now, the long-term setup is unchanged in most cases, and given the oversold momentum readings, a bottoming process is likely underway.
While the historic winter run-up justified and a deep and prolonged correction, the recent regulatory troubles likely extended the decline and weighed on sentiment. That said, the secular trend in the segment remains bullish, and should the coins bottom near the recent lows, a healthy base could form.
BTC/USD, Daily Chart Analysis
BTC remains among the strongest coins, as the largest coin’s dominance is up to 44% again, with the coin clearly holding up above the lows from last week and February too. The long-term momentum is still only neutral, and a test of the February low is possible, although the relative strength of the coin is encouraging. Above the short-term resistance at $8400, key levels are ahead between $9000-$9200, and near $10,000, $11,300, and $11,750, with support found around $7650, $6150, $5500, and $5000.
ETH/USD, Daily Chart Analysis
Ethereum continues to be very weak despite last week’s strong reversal day, and the coin is testing the recent low today, still being stuck in a stuck short-term downtrend. Should the coin violate the low, a test of the crucial $400 level is likely, which marks the start of December break-out as well. The currency is clearly oversold from a long-term perspective, and investors could still add to their holdings as the long-term trend is intact. Primary support is now at $445 while key resistance is ahead at $500, $625, and between $740 and $780.
LTC/USD, Daily Chart Analysis
Litecoin is testing last week’s low and the broader rising trendline after the LitePay scandal, but the coin remains relatively strong form a long-term perspective, still holding up well above the February low. Long-term investors could still add to their holdings here, but the short-term downtrend is intact. Resistance is ahead at $150 and in the key $170-$180 zone is just ahead as primary resistance, while the support is at $140 and $125.
DASH/USD, Daily Chart Analysis
Dash dipped back below $400 after a brief period of relative strength as the selling resumed in the segment, but the coin is still trading near the February low, as the bearish momentum is weak. The coin is in a key support zone that could serve as a base, but a dip below $360 would warn of a test of the $300 level. Further strong resistance above $400 is ahead at $435, $500, and between $575 and $600.
XRP/USD, Daily Chart Analysis
XRP is still very weak compared to the rest of the majors, trading just above last week’s lows, in a strong short-term trend. Ripple is trading in a similar pattern that it formed last year after the April-May surge, with a possible base forming near the recent lows. Below the recent lows, support is only found at $0.42, the prior all-time high, while resistance is ahead at $0.68, $0.85, and $1.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic failed to build on its relative strength last week, as the widespread selling pressure dragged the coin lower, but for now the coin is trading above the major lows of March and February. The currency is clearly oversold from a long-term perspective, and a major bottom is likely forming, so long-term investors could still add to their holdings here. The coin is hovering around the $16 support, with another level at $14.50 while resistance is ahead at $18, $20 and around $23.
XMR/USD, Daily Chart Analysis
Monero remains relatively strong from a long-term perspective, but the short-term picture is now bearish. Momentum is clearly oversold, and the coin is likely building a base between $150 and $175. Several strong resistance levels are ahead at $200, $240 and $280, but investors could still add to their holdings.
NEO/USDT, Daily Chart Analysis
NEO continues to trade in tandem with Ethereum, after a brief period of relative strength, and the coin is only slightly above last week’s lows and the strong support zone near $50. The currency is clearly oversold from a long-term perspective, while being bearish short-term. As a major bottom is likely forming, investors could still add to their holdings, with key resistance at $64, $80, and $100, and support further support found at $40.
IOTA/USD, Daily Analysis
IOTA is still in a slightly better shape from a short-term technical perspective than the rest of the market, but the broad declining trend is intact, and the coin is back below the February low at $1.2 after testing the trendline last week. Strong resistance is ahead at $1.5, $1.9 and between $2.2 and $2.35, while support is found near $1.1 and $1.1.
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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.