Although the major coins are still not completely out of the woods, with the dominant downtrend still being intact, bullish signs continue to show up across the board, and today’s rally could be the start of the durable rally that bulls have been expecting.
The stabilizing global stock markets and the improving news flow helped the advance since yesterday, and now the largest digital currencies are over last week’s lows, and given the oversold long-term readings, the bearish cycle could be over.
The leaders of the rally are already sporting significant gains, with Litecoin, Dash, IOTA, and Ripple all being up by 50+% off their lows. While the explosive rally will likely experience volatile corrections, the bottoming process will still offer entry points for long-term investors.
LTC/USD, 4-Hour Chart Analysis
Bitcoin is also up by a healthy margin, and the coin is well clear of the $7650 level that serves as the line in the sand in the current setup. The most valuable coin faces resistance between $9000 and $9200, and volatility will likely remain high and traders should still be cautious with new positions, while long-term investors could use the short-term sell-offs to add to their holdings.
Further support levels are found between $6750 and $7000, at $6150 and $5750, while above primary resistance more levels are at $10,000 and $11,300.
BTC/USD, 4-Hour Chart Analysis
A Sea of Green
With all the majors being up by double digits, the total value of the market is back at $400 billion after falling close to $300 billion during the rout. Ethereum and Ripple, the second and third largest coins are both joining the party, as now ETH also cleared the overbought readings on the daily chart.
XRP is nearing the key $0.85 level this morning, and the $1 resistance could be in sight, even as sharp pullbacks are likely given the still elevated volatility.
XRP/USD, 4-Hour Chart Analysis
With correlations breaking down slightly thanks to the bullish short- and long-term developments, the majors are expected to diverge more in the coming period. With that in mind, the individual charts will likely have more information value than during the sell-off, so stay tuned for our detailed technical analysis of the most-traded coins later on today.