Technical Analysis: Correction Continues but Coins Remain Stable
It’s been another mixed session for cryptocurrency investors as judging by only the price action, the segment suffered losses across the board, but comparing the current sell-off to the January plunge reveals that the majors are much more resilient this time around.
The largest digital currencies are holding on to most of the gains of the recent weeks, and the price action near the crucial support zones is also encouraging. With all that said, the correction is not over yet, and further losses are still in the cards, but barring a substantial change in price action, the coins will likely continue the rally.
BTC/USD, 4-Hour Chart Analysis
Bitcoin has been trading around the key $10,000 level all day long, and, so far, a clear break-down has been averted. The short-term momentum indicators are now in neutral territory regarding the most valuable coin, and that could mean that a bottom is close, and investors should already add to their holdings here. Further strong support is found between $9000 and $9200, while targets are ahead at $11,300, $13,000, and $14,250.
XMR/USDT, 4-Hour Chart Analysis
Correlation between the majors has increased during the sell-off, but there are still clear outperformers and laggards, adding to the bullish case. Monero remains among the strongest coins from a technical perspective, trading right at the lower boundary of the bullish consolidation pattern, with the $280 price level holding up for now. The coin faces strong resistance near $300 and $335, but we expect the uptrend to continue with the next target being ahead at $400, while further support is found at $240.
ETH/USD, 4-Hour Chart Analysis
Ethereum has been trading below the key $845 level all-day long, and the second largest coin dipped below $800 as well, but still stayed well clear of the line-in-the-sand level at $740. A test of the zone is still possible before the next leg higher, but price action remains in-line with a bottoming process and a new uptrend could start in the coming weeks. Further support below $740 is at $625 and $575, while resistance is ahead near $910 and $1000.
LTC/USD, Daily Chart Analysis
Litecoin fell below $200 today, but it remained above the next major level at $180, and the short-term momentum is getting close to oversold territory now, signaling a bottom in the coming week. We still expect the currency to resume its uptrend after the correction, with further resistance levels ahead at $225, $250, and $300, and support at $170 and $150.
DASH/USD, 4-Hour Chart Analysis
Dash experienced heavy selling today, as it broke below the $650 level and tested the $600 support before a significant bounce. The coin is hovering around the previously dominant declining trendline, and we expect a recovery above that soon, with the long-term picture still being encouraging. Support is now found at $600, and $500, while further resistance zones are ahead near $700, around $825, $950, and $1000.
XRP/USD, 4-Hour Chart Analysis
Ripple has been among the weakest coins during the current correction and the coin is testing the $0.85 level today, with the short-term momentum readings getting close to oversold territory. That said, the short-term picture turned negative and traders should wait or signs of relative strength before opening new positions, while investors could still add to their holdings. Further support is at $0.68, while targets are ahead at $1, $1.25, and $1.50.
ETC/USD, 4-Hour Chart Analysis
ETC is trading near the key $32-$34 support zone, still showing relative technical strength, and the coin might be close to ending its correction. A dip to $30 or $27 is still possible but we expect the uptrend to resume, even as the coin is ahead in the cycle compared to the rest of the market. Further resistance is ahead near $37 and $43, while another support zone is near $25.
NEO/USDT, 4-Hour Chart Analysis
NEO is still closely following Ethereum, and the coin remains stuck in a broad declining trend, still being behind in the cycle compared to the early leaders of the rally. We still expect the correction to continue, with a possible dip below $100, but investors should continue to accumulate the coin. Resistance is ahead between $120 and $130, just above $150, and near the all-time high at $190, while further support is at $80.
IOTA/USD, 4-Hour Chart Analysis
IOTA has been similarly weak as Ripple during the correction, and the coin remains clearly in the dominant downtrend, although we still expect a break-out in the coming weeks. Investors could still add to their holdings here with the $1.5 support being close to the current price level. Resistance zones are ahead near $1.9, and between $2.2 and $2.35, while the crash-low is found at $1.2.
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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.