The cryptocurrency segment remained generally bearish in the middle of the week, as the Ripple and Bitcoin-led move spread to almost all of the majors, with even the recent leader Ethereum getting hit today.
As BTC got smashed below the dominant rising trendline, a wave of selling pushed the coin under the key $13,000 level before a violent bounce started. Despite the bounce, the long-term picture remains negative, and we still expect a test of the correction low near $11,300 in the coming weeks, with a likely dip below $10,000 before the end of the current cycle. Further important support levels are found at $9000, $8200, and $7700.
BTC/USD, 4-Hour Chart Analysis
Ripple got very close to the key support level at $1.50 today in early trading, and after the sell signal six days ago, the coin is nearing a neutral short-term signal in our trend model, and a more durable bounce is possible here. That said, the long-term picture remains bearish and further corrective price action is likely before the end of the current cycle. Despite the likely consolidation, long-term investors could already accumulate new positions on the short-term sell-offs near the main support levels at $1.50, $1.25, and $0.85.
XRP/USDT, 4-Hour Chart Analysis
Ethereum’s rally topped out near $1350 for now, and given the now severely overbought long-term picture we expect the short-term trend to end in the coming days. With that in mind, although traders could still enter small positions near the trendline, correction risk is now high, and investors should wait for a deeper move lower before entering new positions. Key support levels below $1000 are still found at $850, $740, $625, and near $575.
ETH/USD, 4-Hour Chart Analysis
LTC/USD, Daily Chart Analysis
Litecoin remains in a bearish long-term pattern and on a short-term sell signal as well, although the overbought readings are now mostly cleared. That said, we expect the correction to continue given the preceding extreme run-up, but on the major short-term sell-offs, long-term investors could look for entry points near the main support levels at $180, $125 and $100.
DASH/USD, 4-Hour Chart Analysis
Dash is testing the key $1000 level yet again after a very choppy period, and the coin remains bearish on both time-frames for now. The currency is expected to move below the prior correction low before the end of the cycle, and volatility will likely pick up in the market in the coming days. Major support zones are found around the $850 level, near $600, at $500, $470, and near $410, while resistance is ahead at $1250.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic also got hit after a period of relative strength, and the coin is now back below the crucial $34 level, as the broad correction continues as expected. With a move below $23 still being likely before the end of the cycle, investors should remain cautious here, although in time, a major bottom might be close if the sell-off enters an accelerating phase. Strong support levels are still found at $30, $23, and $28, while resistance is ahead at $40.
XMR/USD, 4-Hour Chart Analysis
Monero joined the segment-wide decline after the brief move above $400 as expected, and the coin is still bearish from an investment standpoint, while also turning negative from a trading perspective. We still expect a move below $300 during this cycle with major support levels under that at $240, $200, $180, and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO tested the $100 level during today’s spike lower, but the short-term uptrend is still intact, even as the coin is now on a sell signal on both time-frames. The currency could still be in for short-term gains, but traders should now control position sizes, with support levels still found at $100, $80, $64, and $56.
IOTA/USD, 4-Hour Chart Analysis
IOTA dipped briefly below the key $3 level today in early trading, as the broad correction continued as expected, but as the long-term picture is now neutral, a tradable bottom could be close in time. That said we still expect the volatile period to continue and a deep move lower is in the cards, with crucial support below $3 still found at $2.35 and $1.5.
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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.