Looking at the altcoins dynamics in the past few weeks, we can state the continuation of the development of a corrective “outset” for the main instruments.
Soon this situation may change and, having overcome the support levels, the quotations of the cryptocurrency will begin to form impulses of decline again, says Dmitry Gurkowsky, leading analyst at RoboForex.
Some of the more volatile tools will decrease faster and others slower. Much indicates that it is too early to talk about the reversal of long-term trends.
Ethereum on the 4-hour chart demonstrates the overcoming of the support channel of the correctional channel, which may indicate the continuation of the development of the long-term downtrend. The truth of the breakdown was confirmed by the formation of the “Black Crosses” on MACD and Stochastic.
The immediate goal of the downward momentum development may be the support line for the short-term downtrend and the $390 mark. After that, the most probable may be a rollback to the resistance line for fixing positions and testing the previously overcome support zone. The rollback target will be $430.
A rebound from the resistance level will allow the market to develop a declining momentum not just to the support line, but to the long-term fractal level of $358. Further behavior and decisions of market participants near this level can form a medium-term “outset” in anticipation of any new fundamental information.
Considering the technical picture of Bitcoin Cash on the 2-hour timeframe, one can see that the market managed to test the resistance line of the corrective corridor only. Having beaten it, quotes were able to test the area of local fractal support, which may be a factor indicating the “bearish” sentiment of the market.
In support of the “bearish” sentiment, the MACD lines declined into the negative zone and the downward channel of the short-term trend formed. But, if you look at Stochastic, you will see the “Golden Cross” in the field of “oversold”, which may indicate the possibility of a rollback in the ultra-short term. Its target can be located on the resistance line of the short-term downtrend at $790.
In the event of a breakdown in the resistance, the market will continue to develop a corrective “outset”, and quotes will be able to rise to the level of $850. But with a rebound, we should expect a new impulse to decline to a local support line – $707. Next, the market will focus on testing the medium-term support line.
EOS quotations on the 3-hour timeframe are still included in the scope of the corrective corridor. Along with this, the construction of a new short-term downtrend is aimed at a support level of $6.28, the breakdown of which will confirm the continuation of the development of the long-term downward trend.
In the short term, we can expect a decrease to the local support line at $6.95, followed by a pullback to the resistance line at $7.90. Confirmation of this hypothesis will be the formation of the “Golden Cross” on Stochastic. To exclude the possibility of a breakdown of the resistance line and the growth of quotations to the level of $9,16 is also not possible, so the situation must constantly monitor and adjust the disposition.
The technical picture of Litecoin demonstrates the formation of a new channel of a downward trend within the medium-term corrective corridor. At the moment, we can observe how the quotes are testing the support line of the current corrective trend. The breakdown of support will allow quotations to move to the lower projection channel and decrease to the support level of $61.20. An indirect confirmatory factor can serve as a reduction of MACD lines in the negative zone.
The short-term outlook suggests a decline to the support line of the short-term downtrend at $72.87. The prospect of forming a “Golden Cross” in the area of ”oversold” by Stochastic may indicate a pullback potential to the resistance line – around $84.00. A rebound from this level will allow to develop a decline to the support level of $68.85, and later – to $61.20.
If we consider the dynamics of quotations Ripple from the point of view of technical analysis, then the current situation can be treated as a “stable outset.”
Approaching the support line, quotes rebounded from it, forming an impulse of growth. This impulse is directed, first of all, towards the resistance line of the projection channel – around $0.4782. After breaking it, the quotes can continue to rise to the resistance line of the current “outset” at $0.5250. The possibility of realizing this scenario is indicated by the Golden Cross on Stochastic, and a similar pattern on the MACD will only confirm this hypothesis.