Altcoins Price Analysis: The Real Bottom Is Still Far Away
The beginning of new week was not the most joyful for cryptocurrency investors. The majority altcoins has gone to a red zone. If to sum up results of the last week in the market of cryptocurrencies, then it is possible to note that the corrective upward trend ended, and the market begins to form a new downward momentum.
The prospects for renewing the lows are not illusory, but the market is still not reaching to the "bottom". On a number of signs it is possible to assume that the market reformats the range of the side movement. But, as usual, the market needs to monitor and control the situation.
Considering the technical picture of Ethereum on a 2-hour chart, you can see that the market is building an original design. The last corrective upward trend tested the resistance of the main channel. The rebound with a decrease is aimed at the support line at $ 370, and from there to the resistance of $ 476.
If you look at the indicators, you can see the formation of the "Golden Cross" on Stochastic in the field of "oversold". This may be a signal of a rollback to the resistance line at the current level of $ 485. At the same time, a test of a psychologically important area near the $ 500 level could provoke the market to continue growing to $ 592.
Bitcoin Cash demonstrates the continued downward trend. The market tried to test the resistance of the main channel, but it didn't form a growth trend. The reversal attempt resulted in a rebound from resistance with a breakdown of the support line for the short-term uptrend. Also confirming the impulse of the decline were the "Black Crosses" on Stochastic and MACD.
The short-term segment of the market has built a downward corridor, directed to $ 615. The realization of such a simple scenario may stop some confusion of market participants at the moment, as Stochastic's stay in the "oversold zone". Considering this factor, it is possible to admit the increase of quotations to the resistance of $ 742. And its breakdown may provoke a reversal and growth to the level of $ 920.
EOS has traded according to general mood of the market and tested the resistance line of the long-term decline channel.
Stochastic moves into the "oversold" area with the possibility of the subsequent formation of the "Golden Cross" may prompt a rollback to the resistance line - $ 7.70. If EOS/USD will break the resistance, the market can aim at the level of $ 10.00. The rebound from the resistance will give the quotes a chance to decrease to a psychologically important level of support - $ 5.00. But after that, the MACD can form a convergence, which will indicate the potential for a reversal.
From the point of view of the technical analysis, the dynamics of Litecoin can be described as a correction in the upper projection channel.
The short-term trend situation is descending. The current movement of quotes is the testing of the support line, which can end as a retreat from it, and its breakdown. In case of rebound quotes can rise not only to the resistance of the short-term channel, but also the projection - to the level of $ 83.
Confirming factors to this hypothesis are the signals of the emerging "Golden Crosses" on the indicators. After the end of the test of the resistance area, you can expect a two-stage decline: the first - to the level of $ 65, the second - to $ 50.
XRP overcame the resistance line of the descending channel, the market made an application for a "fracture" of the long-term trend. The current situation can be interpreted not just as a downward trend, but also as a test of overcome resistance, which has become support.
The local reduction target is $ 0.4250. Having overcome this level, quotes can update a significant low and reach $ 0.3600. After such a development of the situation and, possibly, the formation of convergence, a rollback can go to around $ 0.5000.