It has been a hectic and emotional holiday week for the crypto segment, and it is far from being over as the major coins are in the midst of a volatile weekend before the New Year. Ripple continued to make headlines as the strongest coin by far, rocketing past Ethereum for the second place of the capitalization list, even as ETH remained relatively strong amid the broad correction.
Bitcoin almost traded within last Friday’s daily range all week long, except a brief period over the $16,000 level, but the selling pressure never really abated. The coin is now back near the lower end of the range, after falling below the key $13,000 support again. We expect the correction to continue with a likely dip below the $10,000 level, although the extreme momentum levels are now cleared. Primary support is at $11,300, with further levels found at $10,000, $9000, and stronger levels at $8200 and $7700.
BTC/USD, Daily Chart Analysis
Ripple’s uptrend continued in earnest throughout the week, and it not only broke out above the $1.25, hitting the range projection target and triggering a sell signal yesterday, but took out all stops and spiked way above the $2 level today in early trading before entering a pull-back. Now even short-term traders should stay away from new positions, given the extreme overbought momentum readings, as a deep correction is likely already underway. Key support levels below $1.50 are found at $1.25, $1, $0.85, and $0.68.
XRP/USDT, Daily Chart Analysis
Let’s see the outlook for the other major altcoins before the New Year.
Ethereum
ETH/USD, Daily Chart Analysis
Ethereum is holding up well amid the broad sell-off, although the long-term momentum indicators still suggest more correction. That said, given the lengthy consolidation period before the recent break-out, the coin should remain strong during the bearish cycle. Key support levels are still found at $625 and $575, while the all-time high is ahead at $850 as resistance.
Litecoin
LTC/USD, Daily Chart Analysis
Litecoin continued its correction as expected, and it is now trading just above the $200 level after today’s sell-off, with still being relatively weak compared to the other majors. We expect the currency to test last Friday’s lows soon, and a dip to new lows is also likely during this cycle. Key support levels are found at $125 and $100, with a weaker zone around $170, and primary resistance ahead between $250 and $260.
Dash
DASH/USD, Daily Chart Analysis
Dash traded near its mini-crash low today and the coin is now also relatively weak following the stellar rally of the previous months. The coin looks ready to continue the correction after the post-crash bounce, and the $815-$865 support zone is unlikely to hold, with further important levels found just above $600, at $500, $470, and near $410.
Ethereum Classic
ETC/USD, Daily Chart Analysis
Ethereum Classic already dipped below the Friday low, being one of the weakest majors during the correction, and we expect another leg lower below the prior all-time high at $23. The extreme overbought readings are getting cleared, but investors should still wait with adding new positions until a more favorable risk-reward opportunity. Strong support under $23 is found at $18, while primary resistance is ahead at $30.
Monero
XMR/USD, Daily Chart Analysis
Monero broke the dominant rising trend today, and with the MACD still showing extreme readings, a deep correction is likely underway in the coin. While the $300 support held up during the sell-off, we expect a move below that, with further key levels found at $240, $200, $180, and $150.
IOTA
IOTA/USD, Daily Chart Analysis
IOTA remained under strong selling pressure amid the broad bounce, and the coin tested the $3 level yet again today, still being among the weaker majors. The long-term MACD is still in a bearish setup, and although the coin is ahead of the other majors in the cycle, further corrective price action is likely. Support levels are still found at $3, $2.35, and $1.50.
How to Use These Charts?
As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”
Here is a reminder of some of the possible strategies once again:
- Buy and hold, without caring about day-to-day (or even month-month) fluctuations
- Buy and hold a core position and add on the major dips; a very powerful strategy
- Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
- Try to catch major turning points to reduce and “re-boost” your position
- Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”
Featured image from Shutterstock
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.
The post Long-Term Cryptocurrency Analysis: Correction Continues as Ripple Goes Berserk appeared first on Crypto Currency Online.
source https://cryptocurrencyonline.co/long-term-cryptocurrency-analysis-correction-continues-as-ripple-goes-berserk/
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