The tide has turned in the cryptocurrency segment today, as the recent short-term trends reversed with most of the major altcoins losing significant ground, led by Ripple, while Bitcoin advancing after a period of underperformance. While the long-term setups are little changed, the recently surging coins might be in for a violent correction, and Bitcoin could extend today’s rally as the short-term technicals are favorable.
BTC broke out above the $15,750 level, triggering a short-term buy signal and now it breached the crucial $16,500 level as well. Despite the rally, investors should still wait with adding to their long-term positions, as we expect further correction after the steep run-up in the recent months. Key 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
Ripple completed a 30% correction in a course of two days after reaching short-term overbought readings, and the now both the long- and short-term picture is bearish. We expect the coin to break the rising trendline and continue its correction, with support levels now found at $2.10, and $1.50, and with further levels at $1.8, $1.25, $0.85, $0.68, and $0.42.
XRP/USDT, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum triggered a short-term sell signal during today’s pull-back, as the coin is now overbought on the 4-hour chart, while also being stretched from a long-term perspective. We expect the currency to enter head lower in the coming weeks, with a possible test of the mini-crash lows from two weeks ago. Above that, support levels are now found at $850, $740, $625, $575.
LTC/USD, Daily Chart Analysis
Litecoin continued to trade inside a relatively narrow range, although it acted stronger than most of the altcoins during today’s sell-off following a weak period. That said, the coin remains under long-term pressures and we expect the correction to continue, with key support levels found at $125 and $100, with a weaker zone near $170.
DASH/USD, 4-Hour Chart Analysis
Dash has been among the weaker and more volatile majors today, testing the $1000 level, as we expected, and the coin remains within a larger scale correction. The currency is expected to dip below the crash-lows in the coming weeks, with support levels found just below the current price at $1000, slightly above $800, at $650, and near $600.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic followed the trend in altcoins lower, and the coin got close to the $30 level yet again following the brief spike above $34 yesterday. We still expect the coin to continue its correction, as the long-term picture remains bearish, and a dip below the prior all-time high at $23 seems likely. Strong support levels below $30 are found at $23 and $28, while resistance is ahead at $34 and $40.
XMR/USD, 4-Hour Chart Analysis
Monero also lost ground today, and the coin remains below the key $400 level in a bearish long-term setup, still being severely overbought from an investment perspective. With the technicals being unchanged today, we still expect the coin to dip below $300 in the coming period with further support levels found at $240, $200, $180, and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO triggered a short-term sell signal as it turned volatile and dipped below $100, and as the long-term picture is now overbought investors shouldn’t buy the dip here. That said. Another push higher is possible off the rising trendline, currently near $75, and traders could still play the trend with smaller positions, as support is now found at $80, $64, and $56.
IOTA/USD, 4-Hour Chart Analysis
IOTA moved lower amid the altcoin sell-off, continuing its correction as expected. While the coin is ahead of the rest of market in the cycle, investors should still stay away from opening new positions, as the coin is likely to remain volatile after the recent exponential surge. Strong support levels are still found at $3 and $1.5, with a Fibonacci support between those at $2.35.