Technical Analysis: IOTA Goes Berserk as Bitcoin Defies Gravity Again

The late-stage rally in the segment continued, as buying is concentrated in fewer and fewer names, with the rest of the majors experiencing capital outflows, as they are already entering a correction. The most valuable coins extended its historic rally above the $13,000, after moving out of the usually bearish rising wedge pattern.

BTC surpassed all our expectations for the current leg higher, as the financial mainstream focused on the cryptocurrency, driving prices to extremely overbought levels. Despite that, we still expect a deeper correction in the coming weeks that could be devastating to the late buyers of the rally. Major support levels are found near $9000, $8200, $7700, and $7000.

BTC/USD, 4-Hour Chart Analysis

Ethereum is leading altcoins lower, with the exception of IOTA and Monero, although those two coins also turned lower in the second half of the session. The second largest coin failed to reach last week’s highs and turned lower off the primary target for the cycle yet again, as selling pressure intensified today. The coin is still above the initial break-out level at $400, but during a likely deep correction in the coming weeks, a test of the $380 and $350 supports is possible.

ETH/USD, 4-Hour Chart Analysis


LTC/USD, Daily Chart Analysis

Litecoin turned lower together with the majority of the coins, but the coin is still trading in the close vicinity of the $100 level and the all-time highs. LTC is likely to follow the market in the likely deeper correction, and a re-test of the $75 ore even the $64 support is possible in the coming weeks, with the long-term picture being overbought, although the short-term uptrend is still intact.


DASH/USD, 4-Hour Chart Analysis

Dash is ahead of Litecoin in the cycle, as it already broke below the short-term uptrend, while being more than 10 percent below the all-time high of last week. The currency remains dangerously overbought from a long-term perspective, and investors should wait for more favorable conditions to add to their positions, with support levels near $600, at $500, $470, and around $410.


XRP/USD, 4-Hour Chart Analysis

Ripple is still showing relative weakness, and the coin fell below the weak short-term uptrend today following the broader market lower. We still expect volatility to pick up again, with key support levels near the current price, just below $0.20 and at $0.18. Target levels are ahead at $0.26 and $0.30, and the long-term momentum is still neutral.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic also faced selling pressure today, as it drifted back under the $30 level, trading right at the short-term trendline currently, with the long-term setup still being severely overbought. We expect a dip below the previous all-time high at $23 during the next correction, with further strong support found at $18.


XMR/USD, 4-Hour Chart Analysis

Monero pushed to yet another new all-time high as momentum players rushed to the market, and the coin surged as far as $300 before turning sharply lower towards the end of the session. The currency is still in a strong short-term uptrend but investors should wait for a correction before opening new positions as the long-term picture is overbought. Major support levels are now found at $200, $180, $150, and $125.


NEO/USDT, 4-Hour Chart Analysis

NEO continues to trade in a volatile range, as the brief calm period ended today, and the coin turned lower yet again, leaving the narrow range around the $40 level. The currency is likely to remain volatile as the broad correction runs its course and the re-test of the $34 level is likely with the $30 level also being in sight. The long-term setup remains encouraging and we expect a rally towards the all-time high following the correction.


IOTA/USD, 4-Hour Chart Analysis

IOTA rallied off the charts as the rally entered a parabolic phase, with the coin almost reaching the $5 level, while taking over Ripple in the list of the most valuable coins. The currency is still likely to enter a sharp correction soon, but the short-term uptrend is still intact. Due to the nature of the rally only minor support levels are found at $3.50 and $2, with the first major technical level found at $1.50.

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.

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.