Technical Analysis: Coins Stabilize After Correction, Bullish Trend Still On
Although the major cryptocurrencies are still well below the highs hit in late April, and none of the top coins resumed the uptrend yet, the market remains positive, with price action still being consistent with an ongoing recovery. The technical divide between Bitcoin and Ethereum is still dominant, with the ETH/BTC pair hovering around its recent 10-week high.
While Ethereum has been leading the during the late April rally, Bitcoin was late to the party, and it continues to lag the second largest coin from a technical perspective. Also, following the recent corrective move, the coins haven’t shown strong upside momentum and so far no short-term signals have been triggered. With that in mind, and given the still slightly overbought long-term momentum readings, traders should wait before entering new positions.
BTC/USD, 4-Hour Chart Analysis
Bitcoin failed to recover above the $9000-$9200 zone, as it remained relatively weak after the test of the $10,000 level, and it is still trading near the $8400-$8700 zone in a choppy fashion. The oversold short-term momentum readings have been cleared, and the coin remains inside a corrective pattern, We still expect the uptrend to continue with targets at $10,500 and $11300, and support found between $7650 and $7800.
ETH/USD, 4-Hour Chart Analysis
Ethereum’s rally halted at the $735 resistance level, without triggering a short-term buy signal, even as the currency drifted out of the corrective pattern. While the coin is still relatively strong from a short-term perspective, it is still somewhat overbought on the daily time frame, and that could point to further consolidation after the strong rally. Key support is still found between $625 and $645 and between $555 and $575, while targets above the $780 level are ahead at $845 and $900.
LTC/USD, Daily Chart Analysis
Litecoin failed to stay above the $150 level despite yesterday’s encouraging strength, and the coin pulled back together with the broader market today. LTC is currently trading near the $140 support, being on a neutral short-term trend signal. Strong resistance above $150 is ahead between $170 and $180, while further support is found at $125.
DASH/USD, 4-Hour Chart Analysis
Dash ran into resistance near the $450 level after showing relative strength in early trading today, and the coin remained on a neutral trend signal similarly to the broader market. Traders should still wait with new positions until a short-term trend change even as the long-term overbought readings have been cleared. Resistance zones above $450 are ahead near $500 and between $575 and $600, while support is found at $400, $375, and $360.
XRP/USDT, 4-Hour Chart Analysis
Ripple couldn’t gain momentum to tackle the $0.75 level and it fell back below the stronger $0.73 support today, in line with the market’s performance. The coin is well off its April highs after the deep correction, and the long-term momentum indicators are back to neutral. While further consolidation is possible, we expect the recovery to resume afterward, with key support levels found at $0.68 and $0.57, while further resistance is ahead near $0.85, $1, and just above $1.1.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is trading between the $18 and $20 support/resistance levels, in a clear short-term downtrend, showing relative weakness compared to the other majors. The technical setup suggests further sideways price action before the recovery could resume. Further support is found at $16, while above $20, strong resistance is at $23.
XMR/USD, 4-Hour Chart Analysis
Monero is also stuck in a short-term downtrend, still showing relative weakness compared to the leaders. The $200 and $2145 levels are in the center of attention, and traders still shouldn’t enter new positions here, even as the long-term momentum indicators are back in neutral territory. Strong resistance above $215 is ahead at $240, while support is found at $175.
NEO/USDT, 4-Hour Chart Analysis
NEO is still trading in the vicinity of the $64 level, in a choppy range, lagging the broader market from a short-term perspective. The long-term setup is no longer overbought, but the short-term trend is still corrective, and traders should still avoid new positions. Further support is found near $50, while resistance is ahead at $70, $80, and $100.
IOTA/USD, 4-Hour Chart Analysis
IOTA continues to show strength after leading the market higher in April, even as it is stuck near the $1.9 level. As the currency is still somewhat overbought on the daily time-frame, the consolidation could continue, but we expect the rally to resume. Resistance zones are ahead near $2.2, $2.35, and $2.6 while support is found near $1.70 and $1.5.
EOS/USD, 4-Hour Chart Analysis
EOS is still working its way through the long-term overbought readings after the strong run-up in April, and the coin spiked back to the $12 support level in the process. The currency is on a neutral short-term signal and traders should wait before entering new positions here. Resistance is ahead near $15.5, $19, and $23, while further support is at $10, and $9.
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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.