Bitcoin’s dominance eroded to 58% today, as altcoins rallied hard, while the most valuable coin lost some ground after yesterday’s crazy session. Although all major coins are in the green, Ethereum’s move above $315 is probably the most important development in the segment, as a lot of traders have been eagerly waiting for the break-out.
The second largest coin is now testing the $330 level after triggering a short-term buy signalearlier on, and the long-term uptrend also remained intact, despite the recent relative weakness in the currency. Just above $330, another strong resistance level is found at $350, while further targets for the move are ahead at $380 and near $400, at the current all-time high.
IOTA is once again leading the way higher with stellar percentage gains, as it hit the next major target at $0.56 just one day after clearing the previous key resistance zone. Litecoin, Dash, and Monero also got hit or got very close to our initial targets, while Ripple, NEO, and Ethereum Classic are only moderately up today. That said, altcoins still look poised to outperform the overbought Bitcoin, so let’s see the 4-hour charts for a more detailed picture.
The negative correlation between altcoins and Bitcoin that dominated the market action in recent weeks is back, but now BTC is showing relative weakness amid the altcoin surge. The coin is still well within the rising short-term trend, but the severely overbought long-term picture and the short-term momentum divergence are all bearish signs. Traders and investors should wait for a deeper correction to enter new positions with key support at $7000, $6700, $6000, and near $5800.
Litecoin cleared the crucial $64 level today, as the break-out remained intact, and with the long-term setup still being clearly bullish, there seems to be much more of the same ahead for the coin. That said, short-term corrections are likely along the way, but the next target zone near $75 will likely be reached in the coming week. Support levels below $64 are found at $56, $53, while above $75, targets are ahead at $82.50, and near $95.
Dash is now trading north of the initial target level at $330, but a stronger resistance zone is found at $360, which could be the first major hurdle for the rally. With the long-term picture still being neutral, the advance could reach the previous all-time high near $400, as the coin remains relatively strong among the altcoins from an investment standpoint.
Ripple is lagging the other altcoins in the current move higher, and although today’s advance triggered short- and long-term buy signals, the zone around the $0.2250 level still poses a threat for bulls here. That said, we expect a rally toward the $0.26 and $0.30 levels as the long-term picture remains encouraging. Support levels are found below the current price zone at $0.1950, and $0.18.
Ethereum Classic is trading in a bullish short-term consolidation pattern after its weekend move, and it looks poised for a rally towards $16 in the coming week, with the buy being intact on both time-frames. The $13.50 level provides primary support, while further key levels are found at $12.50 and at $11, with targets above $16 at $18 and near $23.
Monero finally left the vicinity of the strong resistance zone near $100, and it quickly moved towards the $125 level, as we expected. The coin is still one of the strongest altcoins regarding the long-term picture, and we expect a test of the all-time high near $150 in the coming weeks. Strong support is found at the bottom of the previous trading range near $80.
NEO finally moved above the $30 resistance level, and it got close to the initial target at $34, but the coin continues to trade near the spike-highs of the previous weeks, without giving a clear bullish confirmation. That said, traders could play a move towards $40 here, while it’s still not too late for investors to add to their positions, with support levels at $27 and $25.
IOTA blew past the key zone between $0.45 and $0.48, and it reached our first target at $0.56, even touching $0.60 in the process. Short-term traders could take some profits here, as a short-term correction is likely after the explosive move, but the long-term picture is still bullish, with further targets ahead at $0.64 and $0.75 after the lengthy consolidation.