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Analysis

Technical Analysis: Crypto-Surge Continues with ETC, Monero, and Ripple Leading the Charge

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The historic rally in the cryptocurrency reached even higher today, with Bitcoin getting even closer to the $10,000 mark and some altcoins experiencing another day of lofty gains. Although today’s rise is not as broad as the rally of the recent days, the segment hit another all-time high regarding capitalization above the $310 billion mark, with BTC adding the most in market value again.

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The last major coin on a short- and long-term buy signal, Ripple, finally joined the party, as it surged past the $0.26 resistance and it’s now headed towards $0.30 after a lengthy period of relative weakness. The coin is still yet to turn overbought, and a rally past the long-standing resistance zone between $0.30 and $0.32 is now possible in the coming days, although the majority of the market is now ripe for a deep correction.

XRP/USDT, 4-Hour Chart Analysis

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Ethereum Classic scored the largest percentage gains today, and that triggered a short-term sell signal, so now we advise investors and traders to only keep their core holdings and wait for the next deeper correction to open new positions. Trailing stops are ideal for exiting trades during such break-outs, with the first major support zone only found at $23.

ETC/USD, 4-Hour Chart Analysis

Litecoin and Monero also gained further ground today, as the positive short-term signals remain active, while Ethereum continued to consolidate near our primary target at $475. IOTA hit a record high above the $1.1 level, despite its already overbought state, while Dash and NEO drifted slightly lower. Let’s see how the short-term setups of the majors.

Bitcoin

BTC/USD, Daily Chart Analysis

Bitcoin is grinding higher today, with all eyes on the historic $10,000 mark, as public interest is at an unprecedented level towards the cryptocurrency. We expect a deep correction soon in the coin, as it remains severely overbought on all-time frames, with key support levels are still found at $7700, $7000, and $6700. That said, a short-term move above $10,000 is likely, as the uptrend is still intact.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum continues to trade right at the $475 level, but it failed to launch an advance above the $500 mark so far, despite the broad rally in the segment. The short-term momentum is almost in neutral territory thanks to the consolidation, and another leg higher above the historic price level, towards the target at $545 is likely in the current cycle. Key support levels are still found at $400, $380, and $350.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin got even closer to its all-time high and the $100 level today, and the coin is likely to test both in the coming period, although a broad correction could drag LTC lower as well. Long-term investors should already be reducing their positions here, but traders should still play the rising trend, with support levels at $82.50, $75, and $64.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash remained relatively weak regarding the short-term picture after hitting out our final target for its break-out, with the $600-$625 zone still being in the center of attention. As the coin remains severely overbought regarding the long-term momentum, investors shouldn’t open new positions here. That said, with the short-term MACD almost back in neutral territory, and the uptrend still being intact, another push to new highs is possible.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero hit our next target at $180 today, with double-digit gains, and although the short-term trend remains intact, investors should continue to reduce their positions on the way up. We still expect a move to the $200 level, with strong support found at $150 and $125.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO showed relative weakness today after yesterday’s bounce, but the long-term picture remains encouraging, as the coin is still not overbought. We still expect a move towards the $50 level, although the risk of a broad correction in the segment is rising, while strong support is found at $34 and $30.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA surged past the previous all-time high at $1.1 amid the euphoric sentiment, but the coin remains extremely stretched regarding the long-term momentum, and now the short-term risk/reward ratio is also unfavorable. Investors and traders should now wait for the next deeper correction before entering new positions. Support below $1.1 is found at $1, $0.75, $0.64, and $0.56.

Featured image from Shutterstock

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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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6 Comments

6 Comments

  1. Brentc

    November 28, 2017 at 10:17 pm

    Where can I get these alt coins in USA rather than Coinbase?
    Thanks

  2. Chris G

    November 28, 2017 at 11:16 pm

    thanks Mate – your perspective is always appreciated …

  3. akshayable

    November 29, 2017 at 8:34 am

    i entered etc at $33. Should i sell at a loss and buy again at a lower level or should i wait and price should come to 33$ again.

  4. Chris G

    November 29, 2017 at 4:59 pm

    this is starting to get crazy – good call on ETH, yet again

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Analysis

Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

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With the crypto world being focused on the historical futures launch, the major coins all enjoyed buying following a hectic weekend, and a volatile week as a whole. BTC itself got another boost from the widespread publicity and the volatile correction of the recent days ended, with the most valuable coin bouncing back towards its all-time high.

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While the long-term picture remains severely overbought, the short-term picture is not stretched and further gains are possible even amid the elevated correction risk. That said, investors should wait for a more favorable entry point to ad dot their holdings, while traders should control position sizes in the light of the long-term setup. Major support levels are now near $13,000, $11,300, and $10,000, with stronger levels still at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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The major altcoins are all up today, but only Monero and Litecoin are still within short-term uptrends, and the segment as a whole is still dangerously overextended, and a deeper correction is very likely in the coming weeks. LTC continued its recent break-out, getting close to the $200 level, and joining the extremely overbought group regarding the long-term momentum, and triggering a long-term sell signal in our trend model. Key support levels are found $100 at $75 and $64, with a weaker primary level at $125.

LTC/USD, 4-Hour Chart Analysis

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Analysis

Long-Term Analysis of the Silver Market

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Silver

The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.

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2017 started at a low point for silver, and it seems it will end the year that way as well, meaning investors who bought at the beginning of the year haven’t suffered nor gained much.

This doesn’t mean, however, that the price hasn’t moved during the year. After the low start of the year, silver quickly tacked on about 18% to a top of $17.50 per ounce.

In terms of fundamentals in the silver market, things look a bit complicated for 2018. There are multiple forces pulling in different directions for the price of silver going forward:

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Positives

  • A sharp stock market correction can be expected to occur some time in 2018. Most likely, this will happen sooner rather than later. Stock market crashes always trigger a flight to safety, meaning gold, silver, and quite possibly bitcoin, can benefit.
  • We are seeing signs that inflation may be starting to rise again, although this is not confirmed yet. Rising inflation is always good for precious metals.
  • If the US federal budget deficit widens as a result of the new tax reform, the US dollar may suffer as a consequence. Goldman Sachs put out a note to investors in November 2017 saying that the US debt is “on track” to reach an “unsustainable” level in coming years. Fed Chair Janet Yellen has also said about the US debt that it is “the type of thing that should keep people awake at night.” Rising debt levels creates uncertainty about the economy, which is generally good for gold and silver.

Negatives

  • Central banks around the world seem committed to raise interest rates in 2018. Rising interest rates are bad for precious metals because it would make it more attractive to put money in the bank.
  • The cryptocurrency bull market is on track to continue, diverting attention and capital away from precious metals as a traditional store of value. However, this one is uncertain, as it may also be considered a positive in the way that the rise of cryptocurrencies brings the inflationary and unsustainable nature of fiat currencies into focus.
  • The US dollar may have hit a bottom in 2017 and trade higher compared to other major fiat currencies going into 2018. A stronger dollar is always bad for precious metals, which are priced in dollars.

Silver chart

When looking at the chart, we can see that silver is back down to were it started the year, which coincides with a major support area where it has turned several times in the past few years.

From a technical perspective, silver has been trading in a triangle pattern on the longer-term weekly chart, with the price now trading very near the lower end of the triangle, adding confluence to our bias that silver will trade up from here.

Silver failed to live up to our prediction from early 2017, and is now even trading well below the level from that time.

A low price by any measure combined with two major technical support levels adds confidence to our trade and makes silver a low risk and potentially high reward trade for 2018.

Depending on your own strategy and investment style, you may want to wait for the price to break out from the current triangle pattern it has been trading in for the past year and a half. You would then give up some of the potential return for an even safer trade. After that, major resistance is found around $17.50 and $18, with lots of upside potential if we can finally break through those levels.

Featured image from Pixabay.

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Analysis

Long-Term Cryptocurrency Analysis: Look Out Below?

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After last week’s observation that a major top is in or near in the segment, the Bitcoin surge continued for almost a week, with Thursday’s wild session taking the coin as high as $19,000 (the article uses Bitstamp prices) on some exchanges. While the currency already pulled back by more than 20% the long-term picture is still extremely overbought and a much deeper correction is likely in the coming weeks.

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BTC spiked below $13,000 today, violating the primary weak support at $13,300, with further levels now at $11,300, $10,000 and $9000, but stronger support only found at $8200 and $7700. Next week’s futures launch could cause another jump in trading activity, and volatility is expected to remain very high amid the likely correction.

BTC/USD, Daily Chart Analysis

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While not all altcoins participated in the, supposedly, last part of the rally, IOTA, Monero, and towards the end of the week Litecoin, also stretched above all conventional targets with IOTA also turning exponential after a deal with Microsoft. The coin exploded by more than 350% before entering an initial sharp correction, breaking the steepest short-term uptrend. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other altcoins look after the crazy week.

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