Technical Analysis: Cryptocurrencies Start Week on a Quiet Note as NEO Shines

The broad Bitcoin-led correction continued to dominate trading in the crypto-segment throughout the weekend, as the most valuable coin drifted sideways above the key technical level at $13,000, with dwindling trading volumes.

BTC remains in a declining short-term pattern, although the digital currency still holds well above the mini-crash lows from December, spending almost a month now in the daily range of the year-end plunge. We still expect the largest coin to complete the current cycle with a move below the crash lows and the $10,000 level after the stellar rally of the previous months. Key support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700

BTC/USD, 4-Hour Chart Analysis

Altcoins also settled down across the boards with only a few coins registering strong activity. Ethereum and NEO have been among the coins making headlines, as the second largest coin continued to grind, higher still trading near its recent all-time high today. The price of the ETH token is moving in a short-term uptrend, in the face of the stretched momentum indicators, but we expect a meaningful correction soon, and long-term investors should wait for a more favorable technical setup before entering new positions, with key support levels at $1000, $850, $740, $625, and near $575.

ETH/USD, 4-Hour Chart Analysis

Ripple remained under heavy selling pressure in the meanwhile, as the oversold bounce of the weekend faded away and the coin got close last week’s lows again. As the short-term downtrend is intact, traders should stay away from entering new positions, while investors should wait for short-term sell-offs towards the main support levels at $1.50, $1.25, and $0.85 to add to their holdings.

XRP/USDT, 4-Hour Chart Analysis

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin settled down today after a brief spike above $250-$260 resistance zone that has been capping the price of the coin lately. The coin remains in a broad correction pattern, and another leg lower in the formation with at least a re-test of the crash low near $180 is likely. Key support levels below that are still found at $125 and $100.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash has been relatively weak in recent days, hovering around the $1000 level today, still within the broad correction pattern. Although the long-term is now neutral, we expect further corrective price action given the extent of the preceding rally, with a likely dip below the key support zone in the $800-$850 range. Below that further support is found near $600, at $500, $470, and near $410.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is among the few bullish exceptions amid the ongoing correction, as the coin reached a marginal new all-time high during the weekend, and it is still trading near the $40 level today. The currency still faces long-term correction risk, and we expect another volatile leg lower as the broad correction in the segment concludes. Strong support levels are still found at $34, $30, $23, and $18.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is also among the relatively strong majors today, and the coin remains over the key $400 level, inside the range that developed following the mini-crash. We still expect the correction to continue and carry the coin below the $300 level in the coming weeks. Other important support levels are at $335, $240, $200, $180, and $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO continues to trade in a strong short-term uptrend despite the already overbought momentum readings. Traders still holding positions in the coin should now use tight stop loss orders, while investors should stay away from entering new positions here. The currency could still be in for short-term gains, but correction risk is now high. Important support levels are now found at $100, $80, $64, and $56.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA remains inside the dominant correction pattern after testing the declining trendline yet again. The coin is still likely to enter another leg lower in the correction, as the segment-wide move concludes, and volatility will likely surge higher again. We still expect a relatively early tradable bottom in the currency compared to the rest of the majors, with strong support levels are still found at $3 and $1.5, with a Fibonacci support between those at $2.35.

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.

Author:
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.