Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

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.

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

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

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum is trading in a broad range between $400 and $480 since spiking to $500 at the end of November, and the short-term momentum is still neutral, as the coin didn’t participate in last week’s frenzy. The long-term picture is less stretched than in the case of most majors, and we expect the coin to outperform during the next correction. Key support levels are still found below $400 at $380 and $350.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is bouncing higher together with the market, although the short-term uptrend is broken, and given the stretched long-term picture, the coin remains prone for a deeper correction. A move below $600 is expected soon, and we still advise investors to wait for a more favorable risk/reward ratio. Further support levels are found at $500, $470, and near $410, with resistance ahead near $800.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is still trading with a focus on the major support/resistance levels at $0.2250 and $0.26, while the coin remains relatively weak from an investment perspective, still being stuck well below the May highs. While the long-term setup is still encouraging, we expect further volatile range trading as the next correction unfolds in the segment. Further support levels are found at $0.20 and at $0.18, while crucial resistance is ahead at between $0.30 and $0.32.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic exited its steep short-term uptrend recently and with the extremely overbought long-term picture in mind, we expect a deeper correction, below the $23 level in the coming period. The short-term momentum is back to neutral but traders and investors should wait with opening new positions. Support is found below $23 at $18 while resistance is ahead at $30 and $32.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is the only major in a clear short-term uptrend besides LTC and BTC and although the long-term momentum is still extremely stretched short-term gains are still possible. That said, investors should wait for a more favorable setup before adding to their holdings, with support levels at $240, $200, $180, and $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is still trading in a broad consolidation pattern, while being neutral regarding the long-term picture. The $34 support/resistance level remains in focus, with key levels at $30 and around $40. With the long-term setup still being encouraging, we expect a rally towards the $50 level and the all-time high after a likely correction in the segment, and investors could use the short-term downswings to add to their holdings.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is stuck below the short-term trendline after the recent stellar rally, showing relative weakness, and we still expect a deep correction in the coin in the coming weeks. Strong support is only found at $3 and $1.5, with potential Fibonacci support 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.