Altcoins Price Analysis: Upward Correction
Last week was a real shock for many beginners in the world of cryptocurrency. But at the moment the situation is getting better, and cryptocurrencies are recovering.
The 4-hour chart ETH/USD shows that due to the latest momentum, the market has practically reached the mid-term reduction channel support line. The current movement characterized as a correction with the previous downstream.
After breaking the resistance of the short-term decline channel, the quotes headed towards the upper projection corridor and tend to its upper boundary — the level of $950. Achieved this goal, we can expect a short-term pullback to the level of $800.
But the main goal of the rising upward correction dynamics is the upper limit of the medium-term downstream channel and a level of $ 1060. The psychologically level of $ 1000 may also serve as a strong resistance.
The Stellar picture indicates the beginning of an internal upward correction. Objectively, the downward channel of movement is not broken (only the last minimum has updated), and the current movement is a correction relative to the previous momentum of decline.
The main thing is the current movement is the test of the line of resistance of the short-term downlink channel and the downtrend to a level of $ 0.13. It is precisely the area near this level that will become a zone of long-term consolidation and a subsequent new growth cycle.
However, in case of breaking the resistance line of the short-term downtrend the price will move to the new projection of the upper corridor at the level of $0.50. It is above the resistance line of the main channel of decline, which can indicate a fracture of the existing trend.
Ripple chart shows the continuation of downtrend development. At the same time, between the price chart and indicator MACD convergence is formed to be a signal for reversal.
The Fibonacci scale demonstrates that the nearest targets for the upward pullback are 23.6% ($1.21) and 38.2% ($1.61). If we consider the current situation from the point of view of graphical analysis, the price has just pushed away from the support line of the downward channel and tends to the resistance line at $1.01. A break of this level will open the door for medium-term growth objectives.
The main medium-term Bitcoin Cash trend remains to the downside. The short-term downtrend develops in a stable channel, testing the upper bound.
As the main scenario for further movement, you may consider the breakdown of the resistance line and the exit upwards, in the projection channel to the level of $1400. The latter can be seen as the resistance of the main trend. Its breakdown will indicate a change in the medium-term trend and the possibility of growth to the level of $2320.