NEO, EOS, LTC, Monero, Lumens: Technical Analysis March 16, 2018
There is a flicker of hope at-least in the short term and if we consider yesterday’s shift in momentum across these liquid alt coins then there is a probability of higher highs today.
However, we cannot discount chances of prices crashing yesterday’s lows and under-extension in LTC, Monero, Lumens, NEO and EOS. Any break below and the week should end with bears firmly in control.
Let’s have a look at these charts:
XLM/USD (Stellar Lumens)
Investors are offloading cryptos en-mass and while the depreciation continues, Lumens took a hit losing 10% on top of what it lost on Wednesday. This effectively means that within 2 days, prices are now trading below the middle BB and the 61.8% Fibonacci retracement level at $0.30 in the weekly chart.
In the 4HR chart, there were attempts of higher highs but going forward every high would be a selling opportunity as we trade on the bear break out. It would even be ideal if a stochastic sell signal prints in the 4HR chart because that would be perfect for short entries.
In the mean time, prices seem to be reacting at $0.20 and already a stochastic buy signal turning from the oversold territory is visible in the 4HR chart. Therefore should there be a recovery, sellers should looking for shorts anywhere between $0.25 and $0.30 preferably with a stochastic sell signal in place.
Fact is, sellers are in charge and that should be a common theme at least in the coming days or weeks. However I should sound this alarm. If you didn’t get in earlier then it’s probably safe to stay off and wait for proper entries in the next couple of days.
To begin with, Monero is trending within a bear break out pattern because of that surge below the middle BB-a line of importance in our analysis. The 50% retracement level at $260 will also be our immediate resistance line while $20 or the 61.8% Fibonacci retracement level will look to tame sellers. All these are in the weekly chart.
At the moment-and you can check that reaction in the 4HR chart, prices are reacting at around $200 and there might be some higher highs even in the midst of this strong depreciation.
A stochastic buy signal is already in place and our short term resistance level will be the middle BB at $230 and the minor break out level at $250 if bulls push past $220 in today’s sessions.
Like most alt coins, the overall coin trend is bearish but the best way of jumping into the fray and benefiting from lower lows is by perfect timing.
From technical considerations, I cannot say this is a good time to sell EOS even if bears are definitely in charge. Judging from yesterday’s price action, bears didn’t follow through.
Because of that stochastic buy signal in the 4HR chart, I will recommend waiting for prices to appreciate to this week’s peaks at $5.8 and $6.2. Those should be wonderful opportunities for selling and trading with the main trend.
As per yesterday’s plan, LTC sellers are rejecting lower lows. The middle BB at around $150 is acting as immediate support and already we can see a reaction in the 4HR chart.
Following an under-extension and a whole bull candlestick forming below the lower BB, prices are now charting higher with a stochastic buy signal accompanying this buy pressure resurgence.
As such, our first level of possible price liquidation will be that resistance trend line at around $170 and thereafter this week’s highs at $190 will be our ultimate sell level.
Two things: As long as NEO prices are below the middle BB in the 4HR and weekly charts, then it makes no sense to buy. Unless of course there is a market moving event that negates NEO current slides.
So far, like the rest, there is a broad base recovery in the 4HR chart complete with shifting momentum.
However, note that every high is another selling opportunity. Ideally, $100 or retest of the middle BB in the weekly chart should be a perfect level for selling this pair as we trade a bear break out pattern common across all altcoins.
All BitFinex, Bittrex and CoinBase charts courtesy of Trading View