Cryptocurrencies experienced heavy selling yet again, as the negative regulatory news flow continued to weigh on sentiment. The severe stock market decline in the US also increased uncertainty in the second half of the day, and the majority of the largest coins hit new correction lows. That said, several coins showed relative strength amid the sell-off, and that points to the weakening of the still ongoing downtrend.
Bitcoin fell slightly below the support zone near $6750 today before bouncing back above $7000, and the coin is still stuck below the prior low. The long-term setup is still oversold, and while traders should still wait with opening new positions, investors could still accumulate the currency on the short-term sell-offs, as a durable rally is now very likely. Above $7650, primary resistance is between $9000, while further support is found at $6150 and $5750.
BTC/USD, 4-Hour Chart Analysis
Ethereum also hit a new low during the sell-off, and the token’s price turned higher off the next major support level at $625, as its prior relative strength added away. The coin is still expected to lag the broader market in the coming period as the long-term picture is still not oversold. Further support below $625 is at $575, while resistance is ahead near $740 and $850.
ETH/USDT, 4-Hour Chart Analysis
Litecoin
LTC/USD, Daily Chart Analysis
Litecoin held up relatively well amid today’s sell-off, staying above the prior low and recovering above the key $125 level in late trading. Should the coin form a higher low without penetrating the $100 level, it could be a base for a new cycle higher. Investors could still add to their positions near the major support levels, while traders should expect further elevated volatility, but aggressive traders could enter positions near the main support levels.
Dash
DASH/USD, 4-Hour Chart Analysis
Dash is also holding up above its panic lows but is trading below the key $500 support level today, and the coin remains in a clear downtrend, although the long-term momentum is oversold. Investors could still add to their holdings on the short-term sell-offs, while traders should wait for a trend change before entering new positions. Resistance above $500 is between $600 and $650 and around the $825 level, while support is found at $410 and $360.
Ripple
XRP/USD, 4-Hour Chart Analysis
Ripple is testing the crash low, hitting a marginal new low today, showing some relative strength compared to the segment. While the downtrend is intact, and further losses are still possible, the long-term picture is still oversold and a durable rally will likely start soon. Resistance levels ahead at $0.85, $1, $1.25, and $1.5, while below $0.68, significant support is found at $0.42.
Ethereum Classic
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic plunged below the $18 low today together and it is testing the $16 support, as the downtrend remains dominant for now. Traders should still wait with entering new positions, despite the lengthy correction, while investors could still add to their holdings on the sell-offs, with further support at $14.50, and strong resistance ahead at $23.
Monero
XMR/USD, 4-Hour Chart Analysis
Monero is trading near the $175 support after falling below the previous low, with the long-term momentum now entering oversold territory. The coin is expected to form a durable bottom soon, with the $200 resistance likely being in focus in the coming period. Further levels are ahead at $240, $280, and $300, while support below $175 is found at $150.
NEO
NEO/USDT, 4-Hour Chart Analysis
NEO plunged below $100 yet again, hitting a new correction low amid the broad sell-off. The coin is testing the $80 support , but as the long-term picture still suggests a further correction, both traders and investors should wait before entering new positions here, with further support at $64 and $56.
IOTA
IOTA/USD, 4-Hour Chart Analysis
IOTA penetrated the $1.5 support level during today’s decline, but the coin didn’t fall to significant new lows, showing some relative strength compared to the other majors. While the downtrend could still continue to the $1.1 support, but investors could still accumulate the coin, as a durable bottom is leikyl close.
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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.
