Technical Analysis: Majors Stage Rally but Strong Levels Still Ahead
The cryptocurrency segment has recovered from a broad correction today in early trading, with the most valuable coins all turning into green during the session, despite the bearish start to the overnight session. With bottom-to-top gains of up to 15%, the rally helped in easing the worries of bulls, especially in the case of the relatively weaker coins.
Bitcoin and most of the largest altcoins remained stable during the selloff, and BTC recaptured the $10,000 level quickly after trading as low as $9600 overnight. The initial rally topped out near $10,400, and the coin is trading back near the $10,000 level, as the bullish momentum faded away somewhat.
BTC/USD, 4-Hour Chart Analysis
That said, we expect the uptrend to continue even if the correction could still carry Bitcoin lower. Further strong support is found between $9000 and $9200, while targets are ahead at $11,300, $13,000, and $14,250.
ETH/USD, 4-Hour Chart Analysis
Ethereum showed strength during the bounce again after yesterday, together with the early leaders of the rally, and although the coin dipped below the $845 level in the second half of the session, the signs remain positive for bulls. Support levels are now found at $780, $740, $625 and $575, while resistance is ahead near $910 and $1000.
LTC/USD, Daily Chart Analysis
Litecoin managed to reach back up to $215 after briefly trading near the $180 support during the Asian session today, with the key $200 level still being in the center of attention. The coin remains above the prior declining trendline after testing it overnight, and we still expect it to resume its uptrend after the correction, with resistance levels ahead at $225, $250, and $300, and support at further $170 and $150.
Dash turned volatile after a period of strength and calmer market conditions, and although it fell as low as $600 during the correction, the long-term picture remains constructive. Investors could add to their positions during the current correction, as we expect the recovery to resume. Support is now found at $600, and $500, while resistance zones are ahead near $$650, $700, around $825, $950, and $1000.
XRP/USD, 4-Hour Chart Analysis
Ripple continues to show relative weakness although it held up above the$0.85 level as expected, and it’s trading just below the key $1 resistance after today’s rally. While the correction might still continue, we expect the coin to resume the recovery in the coming weeks, with targets ahead at $1.25, and $1.50, and further resistance at $0.68.
ETC/USD, 4-Hour Chart Analysis
ETC recovered above the key $32-$34 support zone, in a very bullish fashion today after trading close to the $30 level overnight. The coin remains one of the strongest majors from a short-term technical perspective and we expect the uptrend to resume soon. Resistance is ahead near $37 and $43, while further support zone is near $27.
XMR/USD, 4-Hour Chart Analysis
Monero continues to trade near the $280 level, the lower boundary of the bullish consolidation pattern, still among the strongest coins from a long-term technical perspective. The coin faces strong resistance near $300 and $335, but we expect the uptrend to continue even if the correction is not done yet. Above $335, the next target is at $400, while further support is found at $240.
NEO/USDT, 4-Hour Chart Analysis
NEO is lagging behind most of the majors today, being stuck below the key $120 level the lower boundary of the primary resistance zone ahead. As we still expect the broad correction to continue, traders should stay away from new positions, but investors could still accumulate the coin. Further resistance is ahead at $130, $150, and near the all-time high at $190, while support is at $100 and $80.
IOTA/USD, 4-Hour Chart Analysis
IOTA held up above the $1.50 level despite the relative weakness that it has been showing during the correction, and it’s now slightly stronger during the bounce. The correction could still continue but we expect the recovery to resume soon, with resistance zones are ahead near $1.9, and between $2.2 and $2.35, while further support is at $1.2.
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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.