Even in the face of bullish expectations, altcoins bull momentum is fading out and the market is down roughly five percent from recent highs. Like their rapid gains, IOTA and Tron are leading the charge losing eight percent in the last 24 hours while others as Litecoin is likely to retest main support at $50. In any case, today will most likely determine the next course of action as laid out.
Let’s have a look at these charts:
EOS Technical Analysis
After periods of acceptable higher highs, EOS price are now finding resistance near $7. Though there were expectations of further upsides, yesterday’s damping effect didn’t do much service to price which is currently down eight percent in the last 24 hours.
Needless to say, yesterday’s EOS trade strategy holds true following that Aug 27 upsurge and close above Aug 17 highs triggering our intra-range longs with targets at $7.5. As it is, any dip below $4.5 effectively invalidates this trade plan.
Therefore, bearing in mind yesterday’s bull damping effect, we suggest taking a neutral approach. Any follow through adding on Aug 27 gains with closes above $7 shall trigger the next wave of buys.
Litecoin (LTC) Technical Analysis
From the News
- Traders whose exchanges support TradeIt can now buy Litecoin and three other coins directly from Yahoo Finance. Declaring this as path towards mass adoption, Charlie Lee is upbeat about this new found support and so are enthusiasts. TradeIt is supported by CoinBase and Robinhood meaning one can easily link to their brokerage accounts via Yahoo Finance APIs.
A three percent clip and a sell candlestick mean bears are back judging from yesterday’s events. From previous Litecoin technical analysis, our long positions remain valid that’s until sellers dip past $55, the immediate support and stop levels.
Overly though—and assuming prices find support and there is a rejection of lower lows today, current prices could after all present an opportunity for aggressive traders to add on to their longs.
On the other hand, conservatives should wait for strong gains above $65 and $70, our resistance zone before taking on longs on dips.
Stellar Lumens (XLM) Technical Analysis
Like the rest of the market, Stellar Lumens is snapping back to consolidation with caps at 25 cents on the upside and the monthly support trend line on the downside.
By trading within a tight trade range—roughly 4 cents in the last month, it means Stellar Lumens prices are stuck within a range mode and in the process validating our prior XLM price forecasts.
In any case and as per our trade emphasis, what we need is a break below our support trend line and 18 cents on the downside for sells activation and 25 cents on the upside for long trading.
Each break out should be accompanied by high trading volumes superseding recent averages.
Tron (TRX) Technical Analysis
From the News
- Traders can now swap and exchange their TRX at Swaplab. By adding TRX, it means the platform now supports more than 45 different cryptocurrencies. Aside that, as they plan to add Visa and MasterCard later this year, the platform would have that exponential exposure due to that fiat-crypto capability.
- The Tron Foundation plans on creating another separate token native to the BitTorrent network.
Even the hype around TVM launch couldn’t help spur TRX bulls. At current prices, TRX is most likely to head lower completing a technical pattern—the retest set in motion by Aug 3 break below 3 cents.
Because of that possibility of prices reverting to bear trend, I suggest staying neutral today and should today end up bearish, then we can begin ramping up shorts from tomorrow with targets at Jan 24 lows in line with our last TRX trade plans.
IOTA (IOT) Technical Analysis
An eight percent clip of IOTA buy momentum mean bulls didn’t break and close above Aug 27 highs. Regardless, our trade position remains unaltered.
However, should we see a dip below Aug 17 highs at 55 cents in the course of today, we shall recommend exiting our longs—if stops haven’t been hit—and taking shorts.
The reasons for this is simple, by rejection of higher highs, the second phase of a break out pattern, the retest would be complete. Therefore, as sellers join in from around previous support—now resistance, traders should sync with bears on the early stages of a potential trend resumption phase. If it pans out as per this projection, stops should be at 83 cents with first bear targets at 30 cents.
Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.
Coins image via Pixabay.