Technical Analysis: Coins Recover from Sell-Off as Bulls Remain in Control

Following yesterday’s brief but deep correction, the major cryptocurrencies seem to be back on the bullish track, as Bitcoin is leading the segment yet again. With the most valuable coin’s dominant currently near 56%, trading in BTC dwarfs the other crypto markets. That said, most of the majors recovered well after yesterday’s rout, while Bitcoin itself reached as high as $5730 today in early trading, only a few percents off its all-time high.

The short-term setup is encouraging for bulls, as the coin cleared the overbought short-term momentum readings while remaining inside the rising trend. A rally towards the long-term target at $6000 is still likely, despite the stretched long-term picture. Support levels are found near $5400, around the $5000 level and at $4650.

BTC/USD, 4-Hour Chart Analysis

Ripple settled down somewhat in early trading but it turned volatile again later on, and the coin is still underperforming the broader market, while Ethereum bounced back well above the $300 level, remaining well below its recent highs. The rest of the market is modestly higher today, although NEO and IOTA are slightly lower still showing a negative correlation with the other majors. Let’s see the short-term charts after the short volatile period.


ETH/USD, 4-Hour Chart Analysis

Ethereum dipped below the $300 level amid the broad move lower and it got close to the key $285 support yet again before the bounce. The coin is now getting short-term oversold, with the long-term uptrend being in no danger. The long-term MACD is still neutral, and a rally towards $380 is likely in the coming weeks, with primary resistance ahead at $330.


LTC/USD, Daily Chart Analysis

Litecoin is back in neutral territory regarding short-term momentum after the correction and the correction looks set for a re-test of the $64 level and a likely break-out to new rally highs in the coming days. The long-term setup is still positive, and we expect the coin to resume its long-term uptrend. Support is still found near the $56 level, around $51, and below the at $44.


DASH/USD, 4-Hour Chart Analysis

Dash continues to be one of the least volatile majors as it trades firmly inside the long-term consolidation pattern, hovering around the $300 price level. With the strong long-term uptrend still being intact, we expect the coin to break-out from the formation in the coming weeks, but until a bullish confirmation, short-term traders should still wait with opening new positions. Resistance levels are ahead near $330 and $360 with the all-time high just above $400 and strong support at $265.


XRP/USD, 4-Hour Chart Analysis

XRP is still one of the most active majors after finding support near the $0.20 level, following the freefall that started off the $0.30 resistance. The short-term MACD is signaling a recovery for the coin, but it needs to rally above the key zone around $0.225 level to return to a bullish short-term signal. The long-term picture is still clearly positive, but strong resistance is still ahead near $0.24, and $0.26, and especially between $0.30 and $0.32.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic holding up above the $11 support level, but it’s still the weakest major, and it fails to show the relative strength that a short-term buy signal would require. For long-term investors, the current levels are still attractive, but the coin still faces resistance at $12.50, with further supply around the $13.50 level, and support at $9.


XMR/USD, 4-Hour Chart Analysis

Monero is trading in a range between the $100 and $83 levels, even after exiting the lengthy declining correction pattern last week. While the coin remains bullish on both time-frames, more sideways price action is possible before a durable move higher. The long-term MACD is neutral, and the currency is confidently above the previous long-term top, pointing to strong underlying strength. Support is still found near the $80 level and around $68, while further resistance is ahead at $125.


NEO/USDT, 4-Hour Chart Analysis

NEO is drifting lower after yesterday’s surge above the key $30 level, still trading inside the broad range that developed after the post-crash recovery. The long-term picture is encouraging, but more time might be needed before the next test of the $40 level, with strong support below the current price at $27 and $25.


IOTA/USD, 4-Hour Chart Analysis

IOTA is still stuck below the $0.45 level, as the short-term selling pressure remains dominant, and before a durable recovery above $0.48, short-term traders are still advised to wait with opening new positions, although investors could add to their positions here. Long-term support is found at $0.35, while resistance is ahead at $0.56 and $0.64.

Featured image from Shutterstock

Trader 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.