Altcoins Price Analysis: Upward Correction May Continue
If to try to estimate the prospects of development of dynamics of cryptocurrencies, then it is necessary to look at dynamics of the last week. During one cryptocurrency market was able to develop a growth momentum as a correction to the previous medium-term trend of decline. The subsequent decrease in quotations has allowed not just to test a support zone, but also to fix it. We can assume that an upward correction has a potential for continuation in the near future.
The technical picture of Ethereum demonstrated the beginning of an upward correction after the formation of convergence on the indicators MACD and Stochastic. At the same time, it is worth noting that the medium and short-term trends retain a downward trend. At the moment on the 3-hour chart you can see the approach and testing of the resistance line of the descending channel. Support level of $270 allows you to outline the corridor of the upward correction trend. Overcoming the current resistance will open the door for quotes to the resistance line of the long-term downtrend - to level 342. From it, we can expect a retreat and the development of a decline impulse to a fractal support level - $198.
The technical picture of Bitcoin Cash demonstrates consolidation of quotations above the resistance line of the previous channel of the downward trend. It was not possible to develop rapid growth due to strong fractal resistance near the level of $600. The rebound from the resistance allowed BCH/USD formed a new area of support.
Considering the potential of the uptrend, we can see that the support at the moment is the level of $505. As confirming factors in favor of growth may be the "Golden Crosses" on indicators MACD and Stochastic. The immediate goal of growth will be the same fractal level of $600. Further long-term targets may be on the resistance line of the current corridor near the $670, as well as in the resistance of the medium-term decline channel near the level of $690. If the breakdown of the support level at 505 is allowed, support at $400.
The medium-term channel of the downward trend is not broken, but the market is building a corrective upward trend aimed at the resistance line of the main corridor. Overcoming it, quotes can develop the growth trend to a fractal resistance level of $6.20, the retreat from which can provoke another impulse to reduce the medium-term order. The potential for breakdown and further growth is indicated by the Golden Cross on the indicators MACD and Stochastic. In case of breakdown of the current support near the $5.00, you should expect a decrease to the support line of the main channel - $2.50.
LTC/USD began corrective growth after testing the support line of the current downward corridor and the formation of convergence on the indicators Stochastic and MACD. At the moment, quotes are trying to overcome the current resistance, after which they can move to the upper projection corridor. Confirmation of the hypothesis of further growth may be the "Golden Crosses" on the indicators Stochastic and MACD. Support for the emerging growth trend is the level of $53.00, and its goal can be on the line of resistance of the projection channel at $67.30. A breakdown of local support may allow quotations to fall to the level of $45.00.