Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.
XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.
Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.
XRP/USDT, Daily Chart Analysis
IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.
IOT/USD, Daily Chart Analysis
Let’s see how the long-term charts of the other majors look this weekend.
Bitcoin
BTC/USD, Daily Chart Analysis
BTC is trading on fresh new highs today, but compared to the previous momentum of the rally, the coin is only inching higher, and the long-term indicators are sill flashing red. We still expect a deep correction in the coming period, and we advise investors to wait until oversold readings to enter new positions after the stellar autumn. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.
Ethereum
ETH/USD, Daily Chart Analysis
Ethereum was helped by the persistent bullish sentiment in the segment and continued its break-out, reaching, and even surpassing the range projection target for the move near $680. The total value of the market climbed above $500 billion thanks in part to the surge in the coin, but now the token joined the ranks of the severely stretched coins, and investors should only keep their core holdings. While short-term gains are still possible, a deeper correction is likely around the corner, with key support levels now found at $575, between $480 and $500, and near the prior all-time high at $400.
Litecoin
LTC/USD, Daily Chart Analysis
Litecoin turned parabolic this week, defying the already stretched momentum readings, and it far surpassed our targets, reaching above the $300 level. We expect a deep correction in LTC, not unlike the one in IOTA after the exponential move, but the short-term uptrend is still intact, and the exact top could still be ahead of us. That said, investors should take a step back and wait for a correction before adding to their holdings, with key support levels found at $125 and $100, and weaker levels at $260 and $170.
Dash
DASH/USD, Daily Chart Analysis
Dash held up very strongly amid the volatile correction, proving its apparent relative strength once again. That said, the coin is clearly overbought, and although we expect it to remain strong in the coming months, a deep correction is likely. Key support levels are still found at just above $600, at $500, $470, and near $410.
Ethereum Classic
ETC/USD, Daily Chart Analysis
Ethereum Classic broke above the prior all-time high today, and it is testing the lower end of the prior trend channel today, despite the extremely overbought long-term momentum readings. While short-term gains are still possible we would stay away from entering new positions here, given the state of the segment and the currency’s market. Key levels are found below the current price at $32, $30, $23, and $18.
Monero
XMR/USD, Daily Chart Analysis
Monero has been hitting marginal new all-time highs this week, but the momentum of the move is suspicious and a bull-trap could be forming as we speak. The steep short-term uptrend is still, but the long-term momentum indicators are off the charts, and a deep correction is very likely in the coming weeks. Key support levels are still found at $240, $200, $180, and $150.
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)”
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.
from Crypto Currency Online https://cryptocurrencyonline.co/long-term-cryptocurrency-analysis-all-majors-stretched-as-ripple-finally-breaks-out/
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