Technical Analysis: NEO Surges as Rally Continues but Risks Remain High

The rally in the segment continued without a major disruption during the weekend, and despite the stretched long-term picture most of the majors are sporting gains today, as the market cleared another important hurdle, the $600 billion mark. The advance was boosted by another BTC futures launch, with several altcoins also adding significant value to the grand total.

NEO has been among the top performing cryptocurrencies recently, and the coin surged past its previous all-time high as we expected, as bullish sentiment remained dominant. While the currency still has room to rise, as the long-term momentum indicators are not severely overbought, a likely broad correction among the coins could drag NEO lower as well. That said, the short-term picture is overbought and at least a consolidation is likely in the coming days, while the $100 level, that is the range projection target as well could be in sight before the end of the current cycle.

NEO/USDT, 4-Hour Chart Analysis

Bitcoin continued to drift higher to new all-time highs, getting close to the $20,000 level yesterday, but the momentum of the move remained weak, and the short-term MACD indicator continues to show negative divergence. With the long-term picture being severely overbought, we still expect a major correction in the BTC market, and the first strong support level is only found at $13,000 after the exponential rally. Further levels are at $11,300, $10,000, $9000, while stronger levels are found near $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum pushed to new all-time high amid the broad rally, surpassing the range extension target for the break-out and getting close to the $800 level in the process. The prior steep short-term uptrend is now broken despite the bullish move, and given the stretched long-term picture. Key support levels are now found at $575, between $480 and $500, and near the prior all-time high at $400.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin is testing last week’s all-time high today after spiking as low as $250 during the recent correction, and although the short-term uptrend is broken, and the long-term picture is among the most overbought in the segment, a push to new highs is still possible. Key support levels are found at $125 and $100, with weaker levels between $250 and $260 and at $170.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is trading in a similar short-term pattern to Ethereum, and the coin also hit a new all-time high above the $1000 price level. The currency is testing the lower boundary of its prior trend channel, and despite the bullish move of the previous days, it remains on a long-term sell signal, given the overbought momentum readings. Major support levels are now found at $800, $650, $600, $500, and near $410.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is trading in a short-term consolidation pattern after its break-out to new all-time highs. As the coin gave a long-term sell signal last week, we advise investors to wait until the next correction in the segment before adding to their positions, although traders could still play the current move with smaller positions. Major support levels are found at the prior high near $0.4250 and in the $0.30-$0.32 range, with a short-term level above those near $0.68.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is drifting higher along the lower boundary of its prior trend channel, defying the extremely overbought long-term momentum readings. Although further short-term gains are still possible, we expect a deep correction in the coming weeks, and investors should stay away from new positions here. Support levels are now found at $32. $30, $23 and $18.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero continued to hit marginal new highs despite the momentum divergence, similarly to Bitcoin, while the short-term uptrend remained clearly intact. We still expect a deep correction in the coming period, with key levels now found at $300, $240, $200, $180, and $150.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA bounced higher within its broad consolidation pattern after clearing the extreme short-term overbought readings, with the help of the broad rally in the segment. Despite the bounce we expect the correction to continue, with as the long-term picture remains stretched, with strong support still only at $3 and $1.5, and potential Fibonacci support 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.

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