Technical Analysis: Coins Hold Their Ground Despite Early Sell-Off
Today’s session started out in a decisively negative fashion, as the continued regulatory issues and the Japanese exchange hack weighed heavily on investor sentiment. The previously weaker majors lead the market lower, while Ethereum remained the most notable bright spot in the segment before the weekend.
Bitcoin fell as low as $10,300 after plunging below the key $11,300 level, but the $10,000 support zone hasn’t been in danger so far. That said, the short-term downtrend is clearly intact and a drop to or below the prior correction lows is the most likely scenario. Above $11,300, strong resistance is found at $13,000 while support below $9000 is at $8200 and $7650.
BTC/USD, 4-Hour Chart Analysis
The morning sell-off was yet again highly correlated between the majors, and that points to a continuation of the correction despite the late-session strength, so traders should expect volatility to remain elevated across the segment.
Ethereum is still overbought from a long-term perspective being the late leader of the preceding rally, and the $1000 level remains in the center of attention before the weekend. We expect new lows int eh coin before the end of the cycle, and below the $740-$750 zone, other support levels and found at $850, $625, and $575, while primary resistance is ahead at $1175.
ETH/USD, 4-Hour Chart Analysis
LTC/USD, Daily Chart Analysis
Litecoin is still among the weakest majors, and it dipped below $170 during today’s sell-off, although the coin remains well above the crash lows near $140. The market still seems to be focused on the support zone between $170 and $180, with further strong resistance at $200. We still expect a test of the crash lows in the coming period, with a likely drop to $125 and a possible move to $100 before the end of the cycle.
DASH/USD, 4-Hour Chart Analysis
Dash joined the sell-off today despite yesterday’s early relative strength, as the short-term downtrend is still dominant. We still expect a move towards the cash low with a possible new low during the current leg lower, with possible entry points for long-term investors near the $625 and 4500 levels, and resistance ahead in the zone around $825.
XRP/USDT, 4-Hour Chart Analysis
Ripple dipped below the $1.25 level as we expected, with the short-term downtrend still being intact. The coin is relatively weak compared to the other majors, and we expect a test of the $1 or even the $0.85 level before the end of the current cycle, although long-term investors could accumulate the currency near those levels.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is back just below the $30 resistance after the early decline today, and the coin remains in a clear downtrend, in line with the broader market. ETC is expected to re-test the $25 and $23 levels, where investors could be looking for entry points, while traders should wait for a trend change before entering new positions.
XMR/USD, 4-Hour Chart Analysis
Monero continued to show relative weakness today, but it managed to rebound above $300 in late trading, although the short- and long-term setups are both negative. We still expect the coin to continue its correction, with a likely dip below the crash lows, and a possible test of the $200 level. Further support is found at $240 while resistance is ahead near $330.
NEO/USDT, 4-Hour Chart Analysis
NEO still trades below the prior rising trendline following today’s volatile session, and the coin remains inside the dominant correction pattern, being oversold from a long-term perspective. We continue to expect the coin to dip below the $100 level during the cycle, with further support levels found at $80, $64, and $56.
IOTA/USD, 4-Hour Chart Analysis
IOTA is still among the weakest majors, barely trading above the weekly lows, while also being close to the crash lows from last week. Despite the weakness, a durable bottom might be close, although further sharp corrective moves are possible before that, with a likely dip below the support zone just below $2, and a possible test of the $1.5 level.
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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.