Technical Analysis: Bulls Back in the Driving Seat

While it’s been exactly three weeks since the major coins hit a panicky correction low, it’s still too early to conclude that the downtrend is over in the case of most of the coins, even as we have already been advocating long-term purchases slightly before the bottom in early February.

The preceding run-up made the steep correction special, and that translated into an almost 70% decline on average in the most traded coins. In light of that, the post-crash recovery is different from the latest rallies in the segment, and volatile sell-offs are still possible, as the majors work their way through the strong resistance levels and declining trendlines.

That said, most of the coins are sporting lofty gains since the bottom, and price action remains favorable, with Bitcoin leading the way higher yet again today. Despite the mid-day pull-back, the most valuable coin is trading near its intraday high after the US close, even as stock volatility increased, which had a negative effect on the segment lately.

BTC/USD, 4-Hour Chart Analysis

BTC still has several resistance levels ahead before a possible test of the declining trendline, with first the $11,300, then the $11,750 level signaling overhead supply. For now, the short-term $10,500 support is in focus while below that the $10,000 level and the $9000-$9200 zone are still strong.

ETH/USD, 4-Hour Chart Analysis

The two major technical obstacles that we noted yesterday proved too strong for Ethereum, for now, as the coin is still consolidating just below the key dominant trendline, with very low volatility. While the exact timing of the next move is not clear, the outlook for the coin is encouraging, and both traders and investors should hold on to their positions here, with primary support still at $845, further levels at $780, $740, and targets head at $910 and $1000.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin has been relatively weak today as it is still consolidating near the $215-$225 short-term resistance zone, with no major moves in either direction. Despite the short-term weakness, we expect the coin to resume the advance in the coming days, with a likely rally above the $250 level, possibly targeting the resistance zone near $300. The coin remains bullish on all-time frames, even as the ideal long-term buying opportunity passed, with support levels found at $200 and $180.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is stuck between the $600 and $650 levels, still showing short-term relative weakness, despite the favorable long-term setup. While further corrective price action is possible, the coin should resume the recovery soon, with resistance levels above $650 at $700 and $750, and targets at $825, $950, and $1000.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple failed to gain traction yet again today, as it continues to trade below the key $1 level in the generally bullish environment. That said, long-term setup is still promising, but another test of the $0.85 level is possible before the coin resumes the recovery, with targets ahead at $1.25, and $1.50, and further support at $0.68.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC is still trading in a bullish consolidation pattern, lagging Bitcoin during today’s rally, as the coin is still hovering below the primary resistance zone just above the current price level. We expect the coin to continue the really in the coming weeks, despite the slightly stretched long-term picture, with resistance found near $43, and support below between $32 and $34, and near $30.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero has been showing relative strength amid this week’s rally, although the $300 level continues to hold back the coin, despite a brief spike above the resistance in early trading. The currency should test the $335 level soon, and given the favorable long-term setup, a rally towards $400 is likely in the coming period, with support levels at $280 and $240.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO continued to show relative strength today after triggering a short-term buy signal earlier on this week, and the coin is now consolidation its gains slightly below the resistance zone near $150. The coin is now above the previously dominant declining tendline, and it is right at the prior swing high, with the long-term picture still being favorable. Above the primary resistance, another level is found near $190, marking the all-time high, while support is between $120 and $130, at $100, and near $80.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is flirting with the $2 level yet again, and the coin is now trading right at the dominant declining trendline, with strong resistance also ahead between $2.2 and $2.35. Although the road still looks bumpy for bulls here, the currency is likely building a base, and we still expect a break-out soon, with key support found just below the current price and near the $1.5 level.

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.

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