The short-term triangle pattern that developed in Bitcoin and in most of the segment, resolved today as expected, and it did so in a bullish manner, with the majority of the majors gaining close to double digits during the session.
The consolidation phase, which saw a meaningful decline in volatility and the further breakdown of the correlations between the coins, could be the base for another leg higher following the huge decline that started in December.
Having said that, while we advise long-term investors to hold on to their positions, and even add to them on the short-term dips, traders should be aware that the dominant trend is still downward sloping, and volatile swings are still likely, which could hurt leveraged players badly.
LTC/USD, 4-Hour Chart Analysis
Litecoin pushed forward before the rest of the market, adding more than 30% in a day and topping the key $200 level, marking a 100% day off the crash lows. The coin faces strong resistance near the current levels, but it remains in a positive technical position from a long-term perspective after gathering strength below the $170-$180 zone where primary support is found now.
BTC/USD, 4-Hour Chart Analysis
The other majors also rallied hard slightly later, as investors were on the edge because of the key US inflation data that fulfilled its promise and created meaningful turmoil in traditional assets. Bitcoin cleared the $9000-$9200 resistance zone, although the much weaker $9500 level, marking the bounce-high from two weeks ago, is still just ahead for the coin.
That said, a rally to $10,000 is now likely with further levels at $11,300 and $13,000, while below $9000, support is found at $7650, with other important zones between $6750 and $7000, and near $6150.
ETH/USD, 4-Hour Chart Analysis
Ethereum is slightly lagging the rest of the segment, as the rally in the coin halted near last week’s high at the $900 level. The currency is still likely to consolidate before a clear move out form the declining trend, as it started its correction later, but investors should still add to their holdings on the short-term dips. Primary support is now at $850 with further levels at $740, $625, and $575, while resistance is ahead at $1000 and $1175.
DASH/USD, 4-Hour Chart Analysis
Dash is also slightly behind the other majors today, as it faces strong resistance close to the current price levels, with the dominant declining trendline being just ahead. The coin is trading right at the key $650 level after the rally while the trendline is at $700 currently. Further consolidation is possible before a break-out, but we expect a new bullish cycle to begin soon. Key support levels are found at $600, $500, $410, and $360, with further resistance ahead at $825, $950, and $1000.
XRP/USD, 4-Hour Chart Analysis
Ripple is among the weakest currencies today, following the lofty gains of the post-crash period, as it remains in a consolidation pattern, well below the previous rally high at $1.25. While the currency could remain choppy in the coming days, and further bottoming is possible before a confirmed trend change, we don’t expect new lows in this cycle and long-term investors and aggressive traders could still enter positions. Support levels are found at $1, $0.85, and $0,68, with key resistance ahead at $1.25 and $1.5.
ETC/USD, 4-Hour Chart Analysis
ETC spiked above the strong resistance zone between $32-$34, after the strong rally of the recent sessions, but it entered a short-term correction after the spike, despite the broad rally in the segment. We expect the correction to continue, and traders should wait for the short-term overbought readings to clear before entering new positions. Key support is found at $30, $27, and $25, and while resistance above $34 is ahead near $40 and $43.
XMR/USD, 4-Hour Chart Analysis
Monero confirmed its encouraging long-term position today, as it broke the dominant declining trendline following a brief period of relative weakness. The currency still faces strong resistance near $280, and further consolidation is likely before a clear break-out, but we expect a new bullish cycle to begin, with strong support at $240 level, further levels at $200, $175, and $150, and key resistance ahead at $300.
NEO/USDT, 4-Hour Chart Analysis
NEO is among the weaker coins from a short-term technical perspective, and considering the still only neutral long-term momentum, we still expect it to slightly lag the broader market. That said, investors could use the short-term dips to add to their holdings, while traders should still avoid new positions. Key resistance levels are still ahead at $125 (with a short-term level at $120) and just above $150, while support is at $100, $80, and $64.
IOTA/USD, 4-Hour Chart Analysis
IOTA is having a strong session today, and although it remains below last week’s highs, trading around the $2 level, the long-term setup remains encouraging. Traders should still remain cautious with new positions before a confirmed trend change, but investors could still accumulate the coin on the short-term dips. Key resistance is now ahead near $2.2 and $2.35, while primary support is found just below current price near $1.9 with the next major zone being at $1.5.
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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.