Technical Analysis: Cryptocurrencies Show Strength amid Slight Correction

The crypto segment is trading in a short-term correction, or rather consolidation pattern today, as bullish signs continue to dominate the landscape, despite the pause in the surge. The largest coins are mostly down by a few percent from the overnight highs, but the momentum of the move is not substantial, for now, and several currencies are showing relative strength.

Bitcoin is hovering around the key $10,000 level after hitting an overnight high above $10,300, with the short-term MACD indicator showing the possibility of a short-term correction. With that in mind, investors and traders should wait for a dip before entering new positions, even as further gains are possible. The next key resistance level is at $11,300 with further strong levels ahead at $13,000, and $14,250, while the line-in-the-sand support is still found between $9000 and $9200.

BTC/USD, 4-Hour Chart Analysis

Bitcoin Cash, Litecoin, NEO, and Ethereum Classic are all among the stronger coins, while Ethereum is also holding up well amid the weak pullback in BTC. The price of the ETH token has been very stable today after a period of underperformance, and it is still trading well below the next resistance level at $1000, but also significantly above the key support near $850.

We still expect the currency to consolidate more before a clear move out of the downtrend, but investors could still use the dips to boost their holdings. Further support levels are found at $740, $625, and $575, with resistance above $1000 ahead at $1175.

ETH/USD, 4-Hour Chart Analysis

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin continues to show encouraging strength despite the overbought short-term momentum readings, and as the coin is one of the leaders of the rally, this is a great sign for bulls for the coming weeks. That said, the coin is still expected to consolidate or correct before another leg higher, but investors should hold on to their positions as the long-term picture is just neutral. Resistance is found at the $225 level and near $250, while support is at $200, $180, and $170.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash continues to trade along the dominant declining trendline, as the rally in the coin halted at $700 as expected. Despite the short-term weakness, the coin is still in a strong long-term position, and although further consolidation is likely, investors could still add to their holdings on the dips. Key support levels are now found at $650, $600, $500, and $410, with further resistance ahead at $825, $950, and $1000.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple continues to gather strength below key resistance, as it is still in a bullish consolidation pattern following its strong rally. XRP is back to neutral from a short-term perspective, and the currency is still bullish from a long-term standpoint.  That said, the consolidation could still continue, with key support levels at $1 and $0.85, and resistance at $1.25 and $1.5.

 Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC is sporting gains today amid the broad dip after correcting its recent days in the last couple of days. Just like in the case of Litecoin, ETC’s strength is also a positive sign for the segment, and although further corrective price action is possible, we remain bullish on the coin. Key support is still found at $30, $27, and $25, and while resistance above $34 is ahead near $40 and $43.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero bounced lower off the key $300 level, but the $280 support halted the correction, and the coin remains in a very strong technical position, after breaking above the declining trendline. That said, we expect a  short-term correction in the coming period, with key support at $240 and $215, and further resistance ahead at $335.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is testing the key resistance zone around the $125 level, showing relative strength amid the consolidation. Despite that, we still further corrective price action in the coin, but no new cycle low, and investors could keep on accumulating the coin. Further resistance is ahead just above $150, while support is at $100, $80, and $64.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA continues to consolidate in bullish fashion below the strong resistance zone at $2.2, as we expected, but the long-term picture positive. Although we expect further short-term consolidation, investors could still add to their holdings on the dips, as a trend break is likely in the coming weeks. Further resistance is found at $2.35, while primary support is near $1.9, with the next major zone being at $1.5.

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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