The choppy, hard-to-trade period that we expected after the crash two weeks ago is still ongoing, as most of the major coins are trading sideways inside the range of the initial rally off the January 17th low. That said, the broader declining trend in the segment is clearly intact, and the continuation of the correction is still the most likely outcome, even as the long-term charts are looking more and more constructive.
Bitcoin started the day in a clearly negative fashion, while altcoins also got sold across the board, and the most valuable coin breached the $crucial $11,300 level in the process. Although the decline stopped, later on, the coin is trading near its intraday lows, and the weak rising trendline of the bounce is also close to the current price levels.
We still expect a move towards the crash lows with a possible dip below $9000 before the end of the cycle, but investors could still add to their long-term holdings near the main support zones. Above $11,300 strong resistance is found at $13,000 while support below $9000 is at $8200 and $7650.
BTC/USD, 4-Hour Chart Analysis
As correlations are still elevated in the sector, most of the altcoins are also in the red today, but Ethereum is holding up above the $1175 level, being the strongest major from a short-term perspective together with NEO.
Primary support is found at $1000, and with the long-term picture still being overbought, we expect a move below that and the prior correction lows in the coming weeks, so traders and investors should wait for better opportunities before entering ETH’s market. Below the $740-$750 zone, further support levels and found at $625, and $575.
ETH/USD, 4-Hour Chart Analysis
Litecoin
LTC/USD, Daily Chart Analysis
Litecoin is still among the relatively weaker majors, and the coin is now back near the key zone between the $170 and $180 levels after staying below the strong $200 resistance during the weekend rally. The coin is stuck in a dominant downtrend, while momentum is now neutral on both the 4-hour and daily time-frames, but we still expect a drop below the crash lows with a possible test of the $125 and $100 levels.
Dash
DASH/USD, 4-Hour Chart Analysis
Dash is showing weakness again, as the coin remained below the key support zone around the $8225 price level, despite the broad rally in the segment during the weekend, while it joined the decline today in early trading. As the declining short-term trend in the coin is still clearly intact, we expect the correction to continue with at least a test of the prior lows, with further strong support found at $500.
Ripple
XRP/USD, 4-Hour Chart Analysis
Ripple drifted out from the steep declining trend but the rally attempt failed in the coin yesterday, and the coin is now back near the $1.25 support, despite the brief spike higher. We still expect a dip towards the $1 level soon, with a possible test of the crash low near $0.85 before the end of the current cycle. Strong resistance is ahead at $1.50, while further support is at $0.68, with a short-term zone just above $1.10.
Ethereum Classic
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic has been relatively strong throughout the weekend but the rally in the coin stalled near the declining trendline, and today’s sell-off carried it back to the vicinity of the key $30 level. The currency is now neutral form a long-term perspective, and although we expect the correction to continue, investors could add to their long-term holdings near the $25 and $23 levels on the short-term sell-offs.
Monero
XMR/USD, 4-Hour Chart Analysis
Monero could reach over the $330 level, as it continued to show relative weakness compared to the other majors, but it remains above $300 today. The technical setup is negative from both short- and long-term perspectives, and a drop to $240 and possibly $200 is still likely.
NEO
NEO/USDT, 4-Hour Chart Analysis
NEO has clearly been the leader of the weekend rally, although the coin remained below the prior rising trend channel. The long-term picture is still overbought, and the coin will likely continue its correction soon, and a dip below $100 is expected before the end of the cycle. Further support levels are still found at $80, $64, and $56, while the coin is trading right in a strong resistance zone now.
IOTA
IOTA/USD, 4-Hour Chart Analysis
IOTA is finally showing some relative strength today after being under heavy selling pressure for almost a week. The long-term momentum is headed towards oversold readings, and although we still expect a move below the crash lows, a durable bottom might be close in time. Strong support levels are found at $2.35, just below $2, and at $1.5, and long-term investors could still add to their holdings near those zones.
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 Technical Analysis: Consolidation Continues as Weekend Rally Fails but Support Levels Hold appeared first on Crypto Currency Online.
source https://cryptocurrencyonline.co/technical-analysis-consolidation-continues-as-weekend-rally-fails-but-support-levels-hold/
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