Technical Analysis: Ripple Keeps on Pushing Higher but Selling Pressure Persists
The majority of the cryptocurrency segment is trading significantly lower today, as the early morning losses that were triggered by a proposed change in South Korean legislation (which was later corrected) are still present. The dip was more a continuation of the already ongoing technical correction that has been led by Bitcoin. The majors all managed to rally off the lows to a certain extent, but only Ripple surged higher, riding the momentum of its still-dominant short-term bullish move, and scoring another marginal all-time high despite the pull-back.
XRP faces strong resistance in the current price zone, and although traders could still play leg higher towards the $1.50 level, the extreme long-term overbought readings point to a deeper correction in the near future. Key support levels are still found at $1, $0.85, $0.68, $0.4250 and in the $0.30-$0.32 range.
XRP/USDT, 4-Hour Chart Analysis
Bitcoin traded in the vicinity of the $14,000 level throughout the session, bouncing as high as $14,500 after the early sell-off. The largest digital currency remains under selling pressure following the lofty gains of the last couple of month, and the correction that started in earnest last week is still expected to continue with a likely dip below $10,000. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.
BTC/USD, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum has been relatively strong in recent days, and the coin held up well during today’s dip as well, although it failed to follow Ripple in its rally in the second half of the session. That said, the currency is well above the Friday crash-lows and it is also clear of the Christmas lows, and the long-term uptrend is in no danger. While the key $740 level is now ahead as resistance, strong support is still found at levels are now found at $625, $575, between $480 and $500, and near the prior all-time high at $400.
LTC/USD, Daily Chart Analysis
Litecoin is one of the weakest majors today, as it already took out the morning lows, trading near the $225 at the moment. The coin has already shown weakness in the last couple of days, and now it is likely headed for a test of the correction lows. The long-term picture remains bearish from a momentum perspective, and investors should wait before adding to their positions. Key support levels are found at $125 and $100, with a weaker zone at near the $170 level while primary resistance is ahead between $250 and $260.
DASH/USD, 4-Hour Chart Analysis
Dash is trading right at the $1000 level after a weak bounce off the morning lows, and the coin is also among the weaker majors, although it is slightly stronger than LTC. That said, we expect a test of the previous correction low in the coin too, as Dash is also looking prone for more downside after the stellar rally. Major support levels found are still found at the current price and below that slightly above $800, at $650, and near $600.
XRP/USD, 4-Hour Chart Analysis
Ripple remains the strongest major coin from a short-term perspective, as it is trading just below its all-time high near $1.25. While traders could still play the short-term trend, investors should remain patient and wait for the next correction before adding to their holdings after the recent almost 500% rally. Support levels are found at $1, $0.85, $0.68, $0.4250 and in the $0.30-$0.32 range.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is also trending lower today, and it is now just above the $25 level, which marks the correction-low so far. We still expect a move below $23 during this cycle, with strong support at $18. Primary resistance is ahead at $30, with further levels at $34 and around $40.
XMR/USD, 4-Hour Chart Analysis
Monero has been trading in a narrow range today, following the morning dip, and the coin is still trading right at the dominant uptrend line, as the 4-Hour MACD is back in neutral territory. The currency is likely in for a trend-break and deeper correction in the coming period, with primary support still at $300 and further important levels found at $240, $200, $180, and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO also go pulled lower by the broad sell-off this morning, and although the long-term picture is still more bullish than in the case of most of the majors, further volatile consolidation is likely as the correction concludes. Now, the currency is trading inside the domain correction pattern again, with key support zones still found near $56, $50, and around $40, and resistance is ahead at $64 and $80.
IOTA/USD, 4-Hour Chart Analysis
IOTA bounced lower off the previously dominant rising trendline, and it has been relatively weak during today’s bounce. We still expect the coin to continue its correction, although it is somewhat ahead of the rest of the market in the cycle, and an early bottom is possible compared to the rest of the majors. Strong support levels are found at $3 and $1.5, with a Fibonacci support between those 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.