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Technical Analysis: Altcoins Lift-Off as Bitcoin Drifts Lower

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Bitcoin’s dominance eroded to 58% today, as altcoins rallied hard, while the most valuable coin lost some ground after yesterday’s crazy session. Although all major coins are in the green, Ethereum’s move above $315 is probably the most important development in the segment, as a lot of traders have been eagerly waiting for the break-out.

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The second largest coin is now testing the $330 level after triggering a short-term buy signal earlier on, and the long-term uptrend also remained intact, despite the recent relative weakness in the currency. Just above $330, another strong resistance level is found at $350, while further targets for the move are ahead at $380 and near $400, at the current all-time high.

ETH/USD, 4-Hour Chart Analysis

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IOTA is once again leading the way higher with stellar percentage gains, as it hit the next major target at $0.56 just one day after clearing the previous key resistance zone. Litecoin, Dash, and Monero also got hit or got very close to our initial targets, while Ripple, NEO, and Ethereum Classic are only moderately up today. That said, altcoins still look poised to outperform the overbought Bitcoin, so let’s see the 4-hour charts for a more detailed picture.

Bitcoin

BTC/USD, Daily Chart Analysis

The negative correlation between altcoins and Bitcoin that dominated the market action in recent weeks is back, but now BTC is showing relative weakness amid the altcoin surge. The coin is still well within the rising short-term trend, but the severely overbought long-term picture and the short-term momentum divergence are all bearish signs. Traders and investors should wait for a deeper correction to enter new positions with key support at $7000, $6700, $6000, and near $5800.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin cleared the crucial $64 level today, as the break-out remained intact, and with the long-term setup still being clearly bullish, there seems to be much more of the same ahead for the coin. That said, short-term corrections are likely along the way, but the next target zone near $75 will likely be reached in the coming week. Support levels below $64 are found at $56, $53, while above $75, targets are ahead at $82.50, and near $95.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is now trading north of the initial target level at $330, but a stronger resistance zone is found at $360, which could be the first major hurdle for the rally. With the long-term picture still being neutral, the advance could reach the previous all-time high near $400, as the coin remains relatively strong among the altcoins from an investment standpoint.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is lagging the other altcoins in the current move higher, and although today’s advance triggered short- and long-term buy signals, the zone around the $0.2250 level still poses a threat for bulls here. That said, we expect a rally toward the $0.26 and $0.30 levels as the long-term picture remains encouraging. Support levels are found below the current price zone at $0.1950, and $0.18.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is trading in a bullish short-term consolidation pattern after its weekend move, and it looks poised for a rally towards $16 in the coming week, with the buy being intact on both time-frames. The $13.50 level provides primary support, while further key levels are found at $12.50 and at $11, with targets above $16 at $18 and near $23.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero finally left the vicinity of the strong resistance zone near $100, and it quickly moved towards the $125 level, as we expected. The coin is still one of the strongest altcoins regarding the long-term picture, and we expect a test of the all-time high near $150 in the coming weeks. Strong support is found at the bottom of the previous trading range near $80.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO finally moved above the $30 resistance level, and it got close to the initial target at $34, but the coin continues to trade near the spike-highs of the previous weeks, without giving a clear bullish confirmation. That said, traders could play a move towards $40 here, while it’s still not too late for investors to add to their positions, with support levels at $27 and $25.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA blew past the key zone between $0.45 and $0.48, and it reached our first target at $0.56, even touching $0.60 in the process. Short-term traders could take some profits here, as a short-term correction is likely after the explosive move, but the long-term picture is still bullish, with further targets ahead at $0.64 and $0.75 after the lengthy consolidation.

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2 Comments

2 Comments

  1. fernip0w

    November 9, 2017 at 11:17 pm

    Any analysis on Siacoin?
    Thanks!

  2. Chris G

    November 10, 2017 at 3:23 pm

    kind of surprised to see things cool off in Ethereum … wondering if it doesn’t have to do with rumors that SegWit2x is back on

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Analysis

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

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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.

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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

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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

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Analysis

Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move

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Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2668 -0.02%
DAX 13125 -0.45%
WTI Crude Oil 56.65 -0.68%
GOLD 1258.00 1.35%
Bitcoin 16,100 -6.32%
EUR/USD 1.1842 0.73%

The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.

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EUR/USD, 4-Hour Chart Analysis

The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.

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WTI Crude Oil, 4-Hour Chart Analysis

The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.

Cryptocurrencies

As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.

BTC/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
11:30 UK Average Earnings 2.5% 2.5% 2.3%
11:30 UK Claimant Count Change 5,900 3,300 6,500
11:30 UK Unemployment Rate 4.3% 4.2% 4.35
15:30 US Core CPI 0.1% 0.2% 0.2%
15:30 US Crude Oil Inventories -5.1 mill -3.6 mill -5.6 mill
21:00 US Fed Rate Decision 1.5% 1.5% 1.25%
21:00 US FOMC Statement

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Analysis

Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets

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Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.

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While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.

XRP/USDT, 4-Hour Chart Analysis

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Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.

ETH/USD, 4-Hour Chart Analysis

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