Technical Analysis: Market Rebounds as Correction Runs Out of Steam
The cryptocurrency market has been experiencing a late-session rally yesterday, shortly after finding support following a steep but orderly dip. The technical picture remained clearly bullish despite the correction, as the overbought readings have been cleared without key support levels being violated in the majors. With most of the largest coins rallying strongly in late trading, the correction lows might already be in, and the next leg of the advance likely started.
BTC/USD, 4-Hour Chart Analysis
Bitcoin bounced off the overnight lows and quickly rallied back above $9000 yesterday, and today, the coin is trading above the $9200 level as well, showing encouraging strength for bulls. While further consolidation is possible, and a rally to new highs might take a few more days, the uptrend is clearly intact and a test of the $10,000 level is likely in the coming week. Further targets above that are near $10,500 and $11,300 while support is found at $8650, $8400 and between $7650 and $7800.
ETH/USD, 4-Hour Chart Analysis
Ethereum also completed its short-term correction and it regained its leadership today, already getting close to the previous highs after providing a short-term buy signal. Long-term investors should also hold on to their coins as the rally will likely continue, even as the best time to buy ETH is behind us. Support is now found between $625 and $645 and between $555 and $575, while strong resistance is ahead and near $740 and $780.
LTC/USD, Daily Chart Analysis
Litecoin continues to be relatively weak compared to the leaders of the rally, and it’s still on a neutral short-term signal, as the correction is still ongoing. That said, the currency held up well above the $140 level and the uptrend is not in danger for now and long-term investors could still add to their holdings. The $150 level is in the center of attention today, with strong resistance ahead at in the key $170-$180 zone, while further support is found at $125.
DASH/USD, 4-Hour Chart Analysis
Dash is testing the $500 level again after the short-term correction, and the coin is likely to continue the rally soon together with the broader market, even as further consolidation is possible. Traders could already enter new positions, while long-term investors could also add to their holdings. Support is found at $435, $400, and $375 while targets are ahead between $575 and $600, and at $650.
XRP/USDT, 4-Hour Chart Analysis
Ripple is yet to provide a short-term buy signal after the correction, but aggressive traders could already enter new positions here, with the $0.84 support/resistance level being in focus yet again. The coin will likely test the $1 level during the next upswing, with further resistance zones ahead just above $1.1 and near $1.2. Key support is still found at $0.73, and $0.68, and long-term investors could still add to their holdings here.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic triggered a short-term buy signal yesterday in late trading, and the coin is still relatively strong compared to the other majors, likely headed for a test of the key resistance zone near $23. While further consolidation is possible, the uptrend will likely continue with further targets at $25, $27.50, and $30.
XMR/USD, 4-Hour Chart Analysis
Monero failed to join today’s rally as the coin is still correcting its recent strong advance, which carried it up to the key $300 level. As XMR has been slightly behind in the cycle so far, further consolidation is likely, but traders could already enter positions here as the rally will likely continue. Key support is found right at the current price level and near $240 and $200, while above $300 the next main target is at $335.
NEO/USDT, 4-Hour Chart Analysis
NEO is hovering around the $75 level and the coin is likely getting ready for another test of the key $80 level and a move above the broad declining trendlien. We expect the currency to test the $100 resistance in the coming weeks, even as a longer consolidation period is also in the cards. Primary support is at $0.64 while the next target is at $110.
IOTA/USD, 4-Hour Chart Analysis
IOTA continues to lead the market higher, providing a short-term buy signal ahead of the other majors, and getting back above the $2 level today. While the consolidation could continue in the coming days, another test of the previous swing high near $2.2 is likely within a week, with support now found at $1.9, $1.7, and $1.5 below $1.5 is at $1.2, while the next major resistance zone is near the $2.2 level.
EOS/USD, 4-Hour Chart Analysis
EOS hit a marginal new high today, despite the still overbought short-term picture, as the steep uptrend continues in the coin. Traders shouldn’t chase the coin higher here, and those holding short-term positions should use a tight stop-loss as correction risk is high. That said, we expect the rally to continue in the coming weeks, with support levels found at $12, and $10, and $9.
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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.