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
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/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.
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.
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.
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/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/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.
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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.