Technical Analysis: Low-Volatility Drift Lower after Encouraging Rally

The cryptocurrency segment is broadly lower today, although the losses our muted, and volatility remained low, in line with yet another short-term pullback in the new bullish cycle. Yesterday’s rally carried Bitcoin briefly above $11,000, while most of the altcoins were left out of the advance, but in turn, most of the majors are only slightly below their recent price levels, and the crucial support zones below are intact, and bulls are still in control.

BTC/USD, 4-Hour Chart Analysis

The most valuable coin was in the center of the moves in the segment recently, and today’s session is no exception, with trading being focused on the short-term support in BTC at $10,500. Price action remains positive in Bitcoin, but with the dominant declining trend still being intact, we still expect a bumpy road higher, and we keep a close eye on the key support zones near $10,000, and in the $9000-$9200 zone. Targets above are still found at $11,300, $11,750, and $13,000.

ETH/USD, 4-Hour Chart Analysis

Ethereum held up well during today’s sell-off although the coin didn’t follow Bitcoin higher yesterday either, so the technical setup remained unchanged, with the two major obstacles, the declining trendline and the prior swing high still being ahead. As price action remains encouraging in ETH, we stil expect a break-out from the declining trend in the coming weeks although the consolidation could still continue before that.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin has been drifting lower today together with Bitcoin, but the coin remains inside the consolidation pattern, that developed following the post-crash rally. The currency is neutral from a short-term momentum perspective, and we expect the rally to continue soon, with strong resistance ahead between $215-$225 and $250, the next target above that found at $300, while support being at $200, and $180.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is stuck near the $600 level today, while being held back by the $650 resistance, with the coin still showing relative weakness compared to the current leaders of the rally. The currency remains in an encouraging long-term setup and we expect the recovery to continue despite the current weakness with further resistance at $700 and $750, and targets at $825, $950, and $1000.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is still struggling to find traction despite the recovery in the other majors after last week’s pullback, but the coin is holding up above the key 0.85 level, and we remain bullish regarding the long-term setup. Targets are still ahead at $1.25, and $1.50, while further support is found at $0.68.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC drifted back into the key support zone between $32 and $34 today, as it continues to consolidate its lofty gains after leading the post-crash market higher. While the coin is now only neutral from a long-term standpoint, as the daily MACD is slightly stretched, but we expect the rally to continue with only the prior swing high just above $37 and the all-time high near $43 ahead as resistance.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero has been showing strength once again during today’s dip, and the coin continues to trade around the $300 level, still within the dominant consolidation zone below the $335 resistance. Above that the next target is at $400, and we expect the coin to reach that in the coming weeks, with support levels at $280 and $240.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is consolidating its recent gains, following BTC lower today after being among the leaders of the post-correction recovery this week. The currency remains in bullish long- and short-term setups, and the rally should continue after the current pullback. Primary resistance is ahead just above $150, with another level at $190, while support is between $120 and $130, at $100, and near $80.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is still struggling to break-out of the broad declining trend, with several strong resistance zones still just ahead for the coin. The currency is trading right at one of those levels near $1.9, while the $2.2 to $2.35 zone could be in focus in the coming weeks, with key support below still found 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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