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Technical Analysis: Bullish Signs Remain Dominant as Coins Continue Rally

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A quiet and positive day; it has been a while that cryptocurrency investors experienced such a comfortable environment, especially amid the most volatile period in global financial markets in the past two years.

Of course, the preceding steep decline was challenging for crypto-bulls, but as early positive signs already emerged last week, and price action looks to be confirming them this week, the worst might be behind the segment.

Most of the majors finished with gains today, although correlations are much lower than in recent weeks, and that leads to a few standout performances, while some of the largest coins were lagging the broader market.

Bitcoin performed in line with the segment’s average, as it continued to consolidate below the key $9000-$9200 resistance zone, while hovering around the weekly high near $8650. With the downtrend in the coin still being intact, traders could still be in for a rocky ride in BTC, although the final cycle low is likely in, and investors could still use the short-term sell-offs to add to their holdings. Further resistance levels are ahead at $10,000 and $11,300, while support below $7650 is found between $6750 and $7000, and at $6150 and $5750.

BTC/USD, 4-Hour Chart Analysis

Ripple was among the leaders again today, as we pointed out in our early update, and the coin continued its rise throughout the session, topping the $0.85 level. The currency was joined by most of the altcoins in the second half of the session, but it remains relatively strong from a short-term perspective. That said, traders and investors should still expect volatile periods before an uptrend is established, with support levels below $0.85 at $0.68 and $0.57, and key resistance ahead at $1, $1.25, and $1.5.

XRP/USDT, 4-Hour Chart Analysis

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum cleared the $850 support/resistance level today, as it continued to trade in line with the broader market following the steep correction. While the downtrend remains intact in the coin, and a test of the $740 is still likely in the coming period, we don’t expect a new low before a durable rally, and investors could still add to their positions on the dips.  Support levels below $740 are found at $625 and $575, while further resistance is ahead near $1000.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin hit an intraday high near $160 today, and the coin remains shy of the $170-$180 support/resistance zone, as it failed to retain its previous relative strength. That said, the coin seems likely to hold well above the prior low near $100 during the future short-term sell-off, and investors and aggressive traders could till enter positions near the mains support levels. Further resistance is ahead near $200 while support is at $150, $125, and $100.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash topped out just below the key $650 level today, and the coin remains one of the most encouraging majors from an investment standpoint. That said, a trend change is still not confirmed, although investors are still advised to add to their holdings on the dips, and a test of the 4500 level is still in the cards. Further resistance level is ahead near the $825 level, while support is found at $410 and $360.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic had a very strong session, climbing above the key $23 level, for a higher swing-high, reaching past last week’s bounce level. That said, a short-term correction could now be near, and traders should still be cautious with leveraged positions while investors could still add to their holdings on the dips.  Key support is found at $18, $16 and, $14.50, while resistance is ahead at $25.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is also very close to last week’s bounce high, although it is still a tad below that key level. XMR continues to be among the strongest majors, and it is edging ever closer to the dominant declining trendline. The currency is trading above the $240 level, with further support found at $200, $175, and $150, while resistance is ahead at $280 and $300.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO continued to slightly lag the segment today as we expected, and the coin remains the least encouraging from a short-term standpoint, as further corrective price action is likely, even as the final low is likely in. Investors could add to their positions on the short-term sell-offs, but traders should wait before entering new trades. Resistance levels are ahead at $125 and just above $150, while support is at $100, $80, and $64.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA resumed its rally after a brief period of relative weakness, and the coin is now trading right at the key support/resistance level near $1.9. As the downtrend is still intact, further volatile trading is expected in the coin, but a final cycle low is likely in and investors could still add to their holdings on the dips. Primary support is found at $1.5, while further resistance is ahead near $2.2 and $2.35.

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 (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 411 rated postsTrader 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.




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Analysis

Crypto Update: 5 Altcoins to Watch This Week

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Bitcoin had another rough week. As a result, altcoins that were included on last week’s list either dumped or stayed close to support. Nevertheless, having a clearly defined range enables you to quickly react when an altcoin either goes below the support or breaches the resistance. You can form expectations as to where the market might go next.

We’ll do more of the same this week. Here are five altcoins to watch this week.

Waves (WAVES/BTC)

Waves pumped hard last week. It climbed as high as 0.0005965 on December 4 from a low of 0.0002336 on November 21. If you failed to ride the early stages of a huge rally, the next best thing is to wait for the pullback.

Daily chart WAVES/BTC

Waves appears to have retested resistance of 0.0004715. It is also in overbought territory so we can expect a deeper retrace this week.

A good pick up area would be between 0.000352 and 0.0003835. These are solid weekly support areas. On top of that, the 200-day moving average is moving around those levels.

If Waves moves below 0.000352, it is likely that there will be a full retrace back to 0.0002336.

EOS (EOS/BTC)

EOS breached range support of 0.000697 on December 1. Considering that the market had been relying on this support since August 14, the breakdown sparked panic selling. Participants who bought within the range raced to dump their positions. As a result, the market nosedived to 0.0004721 on December 7.

Daily chart EOS/BTC

With this breakdown, EOS is now trading within a new range. The range low is weekly support of 0.0005021, midpoint is 0.0006015, and the range resistance is 0.000697. You know the drill: to trade this range, a trader needs to buy the support and sell the resistance.

Bitcoin Cash (BCH/BTC)

Bitcoin Cash (BCH/BTC) has been feeling the effects of gravitational pull after a glorious first week of November. The meteoric rise to 0.098035 on November 7 is now being met by a massive dump. So far, the market is en route for a full retrace. That’s perfect for those who want to play the range.

Daily chart BCH/BTC

0.06815 is a good pick up point if you’re looking to bottom pick the market. However, don’t immediately buy the drop because there’s a chance that market makers will push prices further down to liquidate range low buyers. Instead, wait for Bitcoin Cash to retest the support on the 1-hour chart. This should increase the likelihood of a strong bounce.

Republic Protocol (REN/BTC)

Republic Protocol (REN/BTC) has the makings of the next Ravencoin (RVN/BTC) in terms of price action. The market skyrocketed to a high of 0.00000838 on December 9 from a low of 0.00000551 on December 8. That was an increase of over 52% within 24 hours.

As expected, the pump was followed by a pullback. This is where it gets interesting for us.

1-hour chart REN/BTC

For REN to continue its bullish sentiment, it must recover support of 0.0000704. That should give the market the momentum to test 0.00000816 resistance. On the other hand, a breach below immediate support of 0.00000672 is bearish. It can lead to a full retrace to 0.00000551. If that happens, you can always bottom pick the market.

YOYOW (YOYO/BTC)

YOYOW is the last coin in our altcoins list. From a low of 0.00000290 on September 12, YOYOW (YOYO/BTC) had a beautiful run that saw the market climb as high as 0.00000755 on November 2, 2018. That’s an increase of 160% in less than three weeks. If you see a move like this in a bear market, expect a dump to ensue. That’s exactly what happened.

Daily chart YOYO/BTC

With this dump, the market’s current range is between 0.00000290 and 0.00000550 with a midpoint at 0.00000420. YOYO made it on this week’s list because it just retested the midpoint. The price action makes it very likely for the market to revisit the range support. If the support holds, YOYO/BTC would form a triple bottom structure.

Bottom Line

With Bitcoin printing new lows last week, this week’s list involved altcoins that are ripe for bottom picking. If you’re planning to trade one or more of these coins, you can follow the range that we’ve put together for you. As always, consider buying the support and selling the resistance.

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.8 stars on average, based on 284 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Altcoins

Litecoin Price Analysis: If Current Demand Zone Fails to Hold Then Next Stop is $3

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  • LTC/USD is at serious danger of another hard fall should the range-block seen be breached.
  • Back in December 2013, the price was at current levels and fell down to $1 over a two-year period.

Litecoin has been heavily weighted to the downside of late. The selling pressure intensified through the month of November. This month, December, has seen the pace of that bearish trend intensify. As a result, LTC/USD is trading at its lowest levels seen since May 2017. These moves of course are very much in-line with the rest of the market that has been in decline since the back-end of 2017 – start of 2018. Litecoin is down well over 90% from the start of this decline.

Deadly Range-Block

LTC/USD 4-hour chart

LTC/USD was allowed some time to breath after the chunky pressure south, through November. The price stabilized from 25th November, to then move into range-trading. This was the case right up until 6th December. Confined within a range-block, which technically trend to occur after such excessive movement, to then be resumed in that original aggressive trend of direction. The most recent, moving between a low of $29 to a high of $36, ahead of the firm breach lower on 6th December. This resulted in the price moving down to another fresh low of $22.55, on 7th December.

Once again, a similar observation can be seen via the 4-hour chart view. Since the 7th December, some stabilization has materialized. Currently it is shaping up another range-block, which is subject to a further extensive move to the downside. The low within this new formation, can be seen around the $23 mark; to the upside, this is capped at $28. A breakout south from this block could catastrophic and much more damaging than the prior. There isn’t much in the way of support for quite some way lower, should the price not be able to defy the odds and break higher from the block.

Downside Targets

LTC/USD weekly chart

Should the bears maintain the current course of downside, then the lower support of the current range will be broken. As an extreme target south, eyes could be on a complete reversal of the 2017 bull run. This could see another 500% drop, this of course being a worse case scenario for LTC/USD. Given how fast the bulls ran up to the north, it can come back down just as hard. Back in December 2013, the price was around current levels within the $20 territory. The bears pushed for a hard fall of over 200%, down to $1 territory, over a two year period.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 78 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

USD Has Found Itself Among Outsiders

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By Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets

There are a lot of factors weighing on the US dollar as of late. EURUSD skyrocketed towards the highs it reached on November 20th, as the currency market was overwhelmed by another wave of “escaping-from-the American-currency” investors.

It wouldn’t be right to say that there was one particular factor that made USD fall. The major dollar-based currency pairs is being currently driven by several catalysts, which are forcing it to move towards local highs. Apart from other things, we’re talking about the numbers on the US Labor market published last Friday. As usual, investors were focused on some of them, for example, the Non-Farm Employment Change, which was 155K in November. However, in the previous month, the indicator was 237K, while market expectations for this one were 198K.

Still, the Unemployment Rate in the US remained unchanged at 3.7%. The Average Hourly Earnings added just 0.2% m/m, which is less than expected. However, on YoY, the indicator expanded by 3.1% and that’s a pretty solid number.

The truce in the American-Chinese “trade war”, even considering the arrest of Huawei Technologies’ top manager, makes investors’ demand for USD as a “safe haven” decrease.

There won’t be a lot of numbers from the US this week. The ones worth paying attention to are the Consumer Price Index and Retail Sales to be published on Wednesday and Friday, respectively. On Thursday, December 13th, the European Central Bank is scheduled to have another meeting, the last one in 2018, where the regulator will decide on its interest rate and further monetary policy.

In case of EURUSD, the uptrend is still dominating; this ascending movement may be considered as a correction of the previous long-term downtrend. As we can see in the H1 chart, the pair is getting closer to the upside border of the internal mid-term rising channel, which is the resistance level at 1.1455. If the price breaks it, the instrument may continue growing to reach the key mid-term correctional target at 1.1545. However, one shouldn’t disregard another scenario implying a new decline, which may start if the pair rebounds from the above-mentioned resistance level. To confirm this decline, the price has to break the local support at 1.1405. In this case, the downside target will be close to the support line at 1.1340.

Disclaimer

Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 20 rated postsHaving majored in both Social Psychology and Economics, I went on to continue my education in post graduate. Later I worked as a team lead of a tech and fundamental analysis lab in the Applied System Analysis Research Institute. This helped me to acquire all necessary skills and experience to become a successful trader and analyst, as well as a portfolio manager in an investment company. I'm a pro in the financial field and the author of articles for various international media. I also hold the position of Chief Analyst at RoboMarkets.




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