Technical Analysis: Coins on the Move after Quiet Days in Crypto-Land
Despite several rally attempts since the latest dip two weeks ago, the major coins continued to trade in narrow trading ranges, with not much progress being made. The overall bearish picture is unchanged, as although some of the largest coins broke their steepest trendlines, for a trend change, stable bullish momentum and an established leadership would be necessary.
For now, the previously strong coins are struggling to regain momentum, and the overall market value of the segment is not from the recent lows, as investor sentiment continues to be bleak. That and the long-term technical setup both point to a durable bottom in cryptocurrencies in the near future, even if the current rally attempt fails.
Some of the coins are at important inflection points, so the next larger move will be crucial for the market, with Ethereum’s long-term setup especially being in the center of attention, besides, of course, Bitcoin.
BTC/USD, 4-Hour Chart Analysis
BTC finally broke out of its narrow trading range today in European trading, clearing the $7000 level and rallying up to the crucial resistance zone near the $7650 level. The steepest trendline is now broken and the coin triggered a short-term buy signal, but the broader declining trend is still intact, with strong resistance levels ahead at $8400, and between $9000 and $9200. Investors could still add to their holdings on the short-term pullback, as well.
ETH/USD, 4-Hour Chart Analysis
Ethereum continues to show strength following the trend change in the ETH/BTC trend, and the coin is now testing the resistance zone near $450 after triggering a short-term buy signal yesterday. The second largest coin still faces string resistance zones and the broader declining trendline but the rally of the make-or-break levels is encouraging. Key zones are ahead near $500 and $575, with support found at $400 and $360.
Let’s see the short-term charts of the major altcoins, with EOS now added to the continously anlysized coins.
LTC/USD, Daily Chart Analysis
Litecoin is still stuck below the $125 level and on a neutral short-term signal, as the coin lags the leaders of the current rally, despite its long-term relative strength. That said, the currency found support above the February lows, and although the declining trend is still intact long-term investors could accumulate the coin here, with resistance ahead at $140, $150 and in the key $170-$180 zone.
DASH/USD, 4-Hour Chart Analysis
Dash is following the broader market higher today, probably headed for a test of the primary resistance zone near $360. The coin is trading right at the still dominant declining trendline, and traders shouldn’t enter full positions here despite the buy signal, as a new uptrend is not established yet. Further resistance zones are ahead near $375, $400, and $435, while support is found at $315 and $300.
XRP/USDT, 4-Hour Chart Analysis
Ripple is also trading higher today testing the key resistance zone near $0.57 following yesterday’s break-out from the short-term range. The coin is near the declining trendline as well, and while we can’t conclude a trend change, the long-term setup points to a durable upswing. Resistance is ahead near $0.68, $0.85, and $1, with support around $0.50 and $0.45.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is slightly lagging the broader market today, as it still failed to give a clear buy signal, despite the break-out in several of the majors. That said the coin is holding up above the February low, and the long-term setup is still oversold and favorable for investors. The broader declining trend is intact with resistance levels ahead at $16, $18, $20, and $23, while support is found at $14.5.
XMR/USD, 4-Hour Chart Analysis
Monero popped higher together with BTC today, following an extended period of range-bound price action, although the move is not decisive, with the $200 level still ahead as key resistance. The coin is still very strong from a long-term technical perspective and investors could still accumulate XMR on the short-term pullbacks. Further strong resistance levels are ahead near $240 and $280, while key support is found at $175 and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO added to its recent gains today, getting close to the $64 resistance after yesterday’s short-term buy signal. Despite the rally, the broader declining trend is clearly intact, with confluence resistance ahead at $80, although the oversold long-term picture points to a durable rally in the coming weeks. Support levels are found near $50 and $40 with further resistance at $100.
IOTA/USD, 4-Hour Chart Analysis
IOTA finally broke out above the dominant declining trendline today, quickly rallying up to the $1.20 resistance. While a new uptrend is still not established, both the short- and long-term setups look bullish, and investors could still accumulate the coin on the pullbacks. Key levels ahead at $1.5 and $1.9, while support is found near $1.1 and $1.
EOS/USD, 4-Hour Chart Analysis
EOS extended yesterday’s break-out, rallying up to the next target zone at $9 after clearing the primary zone between $7.25 and $7.40. The coin is one of the leaders of the current move, and although a short-term correction is likely after the large gains, we expect the rally to continue with further targets ahead at 410 and just above $12.
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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.