Technical Analysis: Altcoins Finally Advance but Segment Remains in Downtrend


The behavior of the cryptocurrency segment changed in the last couple of days, with the chronic underperformance of altcoins easing somewhat amid the latest oversold bounce, despite Ethereum’s continued weakness.

While the market is still definitely in a dominant downtrend despite the oversold long-term picture, the shift is encouraging, and it could be the start of a new trading regime.

Several small-cap coins rose significantly yesterday, and today, all of the majors are sporting gains, with some of them taking out short-term resistance levels in the process.

That said, correlations are still elevated, and a clear leadership is missing, with no top currency being in a confirmed short-term uptrend. With that in mind, traders should still remain cautious with short-term positions until more evidence of strength emerges.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to be in one of the best technical positions among the majors, even as the coin lost some market share amid the strong bounce. The coin rose above the prior swing low after Sunday’s failed break-down, but it’s still shy of a short-term buy signal as the declining trend is clearly intact. The long-term setup is still encouraging, but the currency is facing strong resistance near the $7650 level, at $8400, and between $9000 and $9200.

ETH/USD, 4-Hour Chart Analysis

Ethereum remains in a weak technical position compared to BTC and most of the altcoins, as the coin is hovering near the $400 level, below the weekend highs, with the short-term downtrend being dominant. Traders should still avoid entering new positions in ETH here, while long-term investors could add to their holdings. Resistance is ahead at $450, $500, $575, with support found at $400 and $360.


LTC/USD, Daily Chart Analysis

Liteocoin built up relative strength after a period of weakness, and the coin is back to leading the segment higher today, climbing back above the $125 level, and registering double-digit gains. LTC held up above the February low during last week’s selloff, and although several key resistance levels are  ahead and the short-term trend is still bearish, we expect the coin to remain among the strongest coins. Resistance is ahead at $140, $150 and in the key $170-$180 zone, while further support is at $100.


DASH/USD, 4-Hour Chart Analysis

Dash is still trading below the February low despite today’s gains, as the coin spiked below $300 last week amid the broad decline. The currency is in a steep short-term downtrend, similarly to most of the majors, with strong resistance ahead at $360, $375, $400, and $435, while support is found at $315 and $300.


XRP/USDT, 4-Hour Chart Analysis

Ripple is finally showing early signs of strength after a long period of heavy selling pressure, as the coin recovered above the prior low from March, although it is still stick below the February minimum. The short-term trend is still negative while the long-term picture is clearly oversold.  The coin faces at resistance at $0.57, $0.68, $0.85, and $1, with a short-term level found at $0.73.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic breached the February low during the weekend, but it recovered above that and the prior March low, with the $14.50 level being in focus currently. The coin is still trading in a broader downtrend, despite breaking the short-term trendline today, and it is still only neutral according to our short-term trend model. The long-term picture is oversold, but strong resistance is ahead at $16, $18, $20, and $23.


XMR/USD, 4-Hour Chart Analysis

Monero is still clearly the strongest major from a technical perspective, trading well above the February low, the March low, and the prior declining trendline. That said, the currency is yet to establish a new short-term uptrend and it remains on a neutral signal, for now. Strong resistance levels ahead near $240 and $280, while key support is found at $175 and $150.


NEO/USDT, 4-Hour Chart Analysis

NEO only briefly violated the March low during the weekend, but the coin remains relatively weak form a longer-term perspective, and the short-term downtrend is clearly intact. The currency is hovering around the key $50 level, with strong resistance ahead near the February low at $64, and further levels at $80, $100, and between $120 and $130.


IOTA/USD, 4-Hour Chart Analysis

IOTA is still under selling pressure below the broad declining trend, despite showing relative strength amid the recent selloff. While investors could still accumulate the currency, short-term traders should wait for more signs of strength before entering new positions. Key resistance levels are at $1.2, $1.5, and $1.9, while support is found at $1.1 and $1.

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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