Technical Analysis: Coins Retreat Again as Bullish Momentum Fades

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Yesterday’s sharp rally in altcoin prices stalled, and Bitcoin also failed to recover to its previous highs after the Bitcoin Gold fork. As the broad decline dragged the major coins lower, the market cap of the segment fell to $165 billion, with Bitcoin’s decline leading the way. The most valuable coin is now worth $8 billion less than its all-time high, as it got close to the crucial support level near $5400 today.

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The currency is holding up above the key zone and the rising short-term trendline for now, but with the overbought long-term momentum readings in mind, traders shouldn’t jump into new positions, despite the favorable short-term setup. While a rally to new highs is still possible here, investors wait for a deeper correction before adding to their holdings. Support levels below $5400 are found at $5000 and $4650.

BTC/USD, 4-Hour Chart Analysis

Today’s sell-off has been moderate across the board, with no stand-out performances among the altcoins. The previously weaker Ethereum Classic failed to hold up better than its more bullish counterparts, while Tuesday’s best performers, IOTA and NEO, remained well above their previous lows. Ethereum, Litecoin, Monero, and Dash represent the broad average of the market, while Ripple remained more volatile after its recent violent decline. Let’s see the short-term charts in detail.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum retreated towards the middle range of the lengthy consolidation pattern near the $300 level today, as yesterday’s rally fizzled out, and the coin remains in a neutral short-term position. The ETH token is still in a clear long-term uptrend, and we expect a move over the $330-$350 zone in the coming weeks, but more consolidation is possible before the next major move. Support levels below $300 ar eat $285 and near $250, while further resistance is ahead at $380.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin continues to hover around the key $56 level, still being among the most bullish altcoins, but it’s well shy of the next major resistance level that is found at $64. The short-term consolidation pattern is clearly intact and choppy price action is expected to continue until a clean break-out. Further support levels are now found at $53, 51, and $44.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is showing relative strength once again today, although a major break-out is far away, with the declining trendline of the dominant correction pattern found at $315. While the long-term picture is clearly bullish, and we expect a break-out in the coming weeks, strong resistance levels are also found near $300, $330, and $360, and further sideways price action is possible.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP failed to provide a renewed short-term buy signal as it remains clearly below primary resistance, with strong levels ahead around the $0.22 level, and near $0.26. That said, the long-term bullish picture is unchanged, and investors could add to their positions t the current price levels. Support levels are found near the $0.20 level and around $0.18 and $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic spiked below $10 during today’s sell-off, still showing clear relative weakness compared to the other majors, and both traders and investors should wait for bullish signs before entering new positions. The declining short-term trend is clearly dominant, and strong resistance is ahead at $11, $12.50 and especially around the $13.50 level, with long-term support at $9.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero continues to show stability and relative strength, despite today’s decline as it remains clearly inside the narrow trading range that dominated the market since mid-September. The $100 resistance and the support zone near $80 remains in the center of attention, and we still expect the bullish trend to prevail, with further resistance ahead at $125 and above $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO continues to hover around the $30 level despite yesterday’s encouraging rally, but it remains well above the $27 support and today’s low volatility is a positive sign for bulls. Further support is found at $25, while target levels are ahead near $34 and $40, with the long-term setup still looking bullish.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA failed at the dominant declining trendline yet again, and failed to provide a short-term buy signal despite the surge off the $0.35 support. The long-term picture remains encouraging, but a clear break-out of the current lengthy pattern would be needed for a bullish confirmation, with target zones still ahead at $0.56 and $0.64.

Featured image from Shutterstock

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