Cryptocurrencies had a mixed week after the crazy volatility of the previous period, as the largest coins settled down following the weekend surge, and traded sideways for a couple of sessions. Although most of the currencies turned lower towards the end of the week, as we expected, the momentum of the decline is weaker, and a bottoming process is likely under way.
Bitcoin is trading between the $3500 and $3800 levels this weekend, and after the re-test of the former, the coin is close to providing a buy signal. The currency has a developing base formation near the $3000-$3150 zone, and a test of that level is still possible before the next leg higher.
BTC/USD, Daily Chart Analysis
Dash has been the strongest major mid the consolidation and it has retained its strength during Friday’s dip as well. Litecoin, Monero, and Ethereum Classic are lagging the broader market, while Ethereum has strengthened significantly in recent days. With the segment being close to the end of the correction, buy signals are expected to pop up in the coming period. Let’s see how the daily charts are shaping up.
Ethereum
ETH/USD, Daily Chart Analysis
Ethereum seems to be forming a higher low near the $250 support zone that we have been monitoring all week. The coin is close to a buy signal concerning the long-term MACD indicator, and a re-test of the crash lows is unlikely now, as strong support is also found at $235. Resistance is ahead jsut abvoe the current rate and near $330.
Litecoin
LTC/USD, Daily Chart Analysis
Litecoin has been among the weaker coins this week, as it recovered from the crash, but failed to regain the prior all-time high near $56. LTC is still struggling in a short-term downtrend, but the long-term momentum is now oversold and the re-test of the crahs lows is unlikely. Support is now found at 444 and $38 while resistance is ahead at $51, $56 and $64.
Ripple
XRP/USDT, Daily Chart Analysis
Ripple has also been relatively weak since the crash, although the decline itself wasn’t as deep as in some of the other coins as well. The currency is holding up above the long-term base formation, while still being within the short-term downtrend. We still expect a move towards the $0.30 level in the coming weeks, and investors could still add to their positions. Support is found at $0.16 and around $0.14, while resistance is ahead near $0.22 and $0.26.
Dash
DASH/USD, Daily Chart Analysis
Dash is above the short-term trendline after providing the first buy signal among the majors. The coin is trading below the $360 resistance, and a re-test of $300 is still possible, but traders should be looking for buying opportunities on the short-term dips now, with the MACD being back to neutral. Support below $300 is found at $265 while resistance is ahead near $400.
Ethereum Classic
ETC/USD, Daily Chart Analysis
Ethereum Classic continues to be the weakest major short-term, trading in a steep downtrend after falling below the long-term base formation near $13.50 The coin might remain stuck in the long-term downtrend so traders and investors should wait for some strength before entering new positions, despite the attractive price levels. Strong resistance is ahead around the $16 level as well, while support is only found near $9.
Monero
XMR/USD, Daily Chart Analysis
Monero continues to trade in an orderly correction pattern after the stellar rally, showing relative weakness this week. The MACD just reached neutral and although a dip below $80 is still possible, we don’t expect the coin to trade durably below that level, and investors could already buy the short-term dips. Support is still found at $80 and $68, while resistance is ahead at $100 and $125.
How to Use These Charts?
As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”
Here is a reminder of some of the possible strategies once again:
- Buy and hold, without caring about day-to-day (or even month-month) fluctuations
- Buy and hold a core position and add on the major dips; a very powerful strategy
- Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
- Try to catch major turning points to reduce and “re-boost” your position
- Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”
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twitter: @Freelancer_Zin
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