The Christmas period brought about choppy, low-volume sessions, with another Bitcoin-led slump on Sunday that echoed the Friday mini-crash. What followed was a second, less stellar bounce, with slightly lower correlations between the majors, as the market digested the high-momentum correction. BTC remained in the epicenter of the moves, with the most valuable coin being among the relatively weak digital currencies, hovering around the key $13,000 level.
The oversold short-term readings are subsiding and this week’s main question will likely be the fate of the short-term downtrend. Given the still stretched long-term setup, another leg lower remains the most likely scenario, and we still advise investors to wait with adding to their holdings. Support levels below $13,000 are found at 11,300, $10,000 and $9000, with stronger levels at $8200 and $7700.
BTC/USD, 4-Hour Chart Analysis
Ethereum reached higher thanks to today’s rally, and it is testing Saturday’s highs following the 15% advance. The relative strength is confirmed by the violation of the short-term downtrend line, but for now, a buy signal is not warranted, and the long-term setup remains bearish. Key support zones are now found around $625, near $575, $500, and around the prior all-time high near $400.
ETH/USD, 4-Hour Chart Analysis
Litecoin
LTC/USD, Daily Chart Analysis
Liteocin’s price found support around the $250 level before today’s bounce, but the coin failed to reach back to the $300 level again, as volatility and trading activity took a nosedive in the market. The currency remains inside a short-term downtrend, and the AMCD indicator is close to neutral territory again, so we expect another downswing in the coming days. Crucial support levels are just below the current price between $250 and $260, at $125 and $100, with a weaker zone at near the $170 level.
Dash
DASH/USD, 4-Hour Chart Analysis
Dash followed the broader market in both directions amid the choppy post-crash consolidation, but it broke the correlation with Ethereum today, as it failed to show the same relative strength amid the rally. Dash is trading in a short-term downtrend, while still being overbought from a long-term perspective so a deeper correction is likely. Major support levels are found at $1000, $800, $650, and $600.
Ripple
XRP/USD, 4-Hour Chart Analysis
Ripple tested the recent break-out point near $0.85 yesterday, but it managed to climb back to the $1 level today, as it continued o show relative strength compared to the other majors. The coin drifted out of its steep short-term uptrend, and given the now severely overbought long-term picture, traders and investors should be cautious, as correction risk is now high. Further support levels below $0.85 are found at $0.68, at $0.4250 and in the $0.30-$0.32 range.
Ethereum Classic
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is trading near the $30 level today, and the coin is in a short-term downtrend after the Friday slump, and today’s bounce has been relatively weak. While the short-term momentum is oversold, and further consolidation is possible, we still expect the currency to dip below the $23 level before the end of the correction, with support levels also found at $25 and $18.
Monero
XMR/USD, 4-Hour Chart Analysis
Monero held up inside the steep dominant uptrend despite the crash-spike to $250 on Friday, and the coin found support at $300 during yesterday’s sell-off. Although a push higher from the rising trendline is possible, the coin is extremely overbought after the almost 400% rally. We expect the short-term trend to be broken soon with support levels below $300 found at $240, $200, $180, and $150.
NEO
NEO/USDT, 4-Hour Chart Analysis
NEO successfully tested the break-out zone yesterday, and it remains inside a bullish consolidation pattern amid the broad correction in the segment. The currency is still encouraging from a long-term perspective, and we still expect a rally towards the $100 level following the correction, but traders should expect further volatility. Key support zones are still found near $56, $50, and around $40, while resistance is ahead at $64 and $80.
IOTA
IOTA/USD, 4-Hour Chart Analysis
IOTA is still trading in the proximity of the dominant trendline, as it has been hovering around the $3.50 level since the Friday slump. The coin remains overbought despite the recent sell-off, and we expect another move lower in the coming weeks with strong support levels at $3 and $1.5, and a Fibonacci support between those at $2.35.
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 Cryptocurrency Analysis: Coins Settle Down as Trading Volume Slumps appeared first on Crypto Currency Online.
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