Altcoins Price Analysis: A New Hope
For the first time in several weeks, bitcoin and other cryptocurrencies have demonstrated a powerful momentum, having even forced traders on BitMEX within only 20 minutes to close short positions for $180 million. The update of new local maximums can lay the foundation for a further uptrend.
Last week, we observed another decline in the development of a prolonged downward trend. At the moment the situation can change dramatically. The result of last week was a decline in quotations, but significant lows were not updated. This situation can be interpreted as an attempt to form a corrective upward trend.
On 2-hour chart ETH/USD you can see that the market, breaking the resistance of the downward channel, has built the corridor of the upward trend. In the near future, the price may pullback to the overcome resistance line of $ 460.
The main resistance for the development of a stable upward trend is the psychologically important level of $ 500. If ETH/USD will break the local resistance above $ 500, you may expect an increase to the projection resistance line of $ 595.
If we analyze the medium-term dynamics of Bitcoin Cash, we can see that the quotes have overcome the resistance line of the previous reduction channel. After the breakdown of the resistance line, the upward momentum reached the resistance line of the new channel. In the case of continuing the development of the uptrend, one can expect an increase in quotations to the projection channel, or more precisely, to its resistance of $ 1035.
But the most relevant is the short-term technical picture. When forming a short-term trend on the indicators MACD and Stochastic, there is a divergence, which can speak about the future corrective decline. The immediate goal of the decrease may be local support near the $ 825. Having broken through the nearest support, quotations can decrease to the projection support level of $ 788. It is also impossible to exclude a decline to $ 710, as the market can test the overcome resistance line that has become support.
The technical picture of the EOS can get out of the general market. Why? The fact is that the quotes of EOS have rewritten previous lows, after which the convergence on MACD was formed. It became a signal to the beginning of correction. A new growth impulse broke through the resistance line and quotes moved to the upper projection channel.
The main growth target is located on the resistance line at $ 10.50. The confirming factor in favor of the hypothesis of continued growth is the position of MACD in the positive zone and the direction of the lines up. In the short term, we can expect a pullback to the overcome resistance line - $ 7.83. This can be indicated by the position of Stochastic lines in the "overbought" zone.
Litecoin broke through the resistance line of the projection channel. This fact has become another fact of the uptrend development. The growth impulse, having reached the resistance line of the new traffic channel, can make a correction decrease to the support at $ 75.60. The factor that indicates the possibility of a decrease may be "overbought" on Stochastic.
In the medium term, we should expect the development of an uptrend, as evidenced by the dynamics of MACD lines. In addition, to develop an upward trend, the market needs to overcome the local resistance line. The growth target may be the level of resistance of the projection channel - $ 108.80.
Having overcome the resistance line of the descending channel, Ripple formed a correctional flat. After the test of the overcome resistance line, which became support, a new growth impulse tested the resistance line "outset". Realizing the nature of the lateral trends and considering the "overbought" on Stochastic, it is logical to expect a decrease to the support level of $0.4280. To develop an uptrend, quotes need to break through the resistance line. The closest growth target could be the projection resistance line and the $0.5500. In the future, the target of growth may be the $ 0.6200.