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Analysis 4 mins

USD DEMAND DRIVING ALT COIN PRICES LOWER

Avatar Dalmas Ngetich 2 years ago

Increased USD demand is driving alt coin prices lower. From a technical point of view, our alt coin live charts hints of more bear pressure in the coming session especially in NEO. Let’s review alt coin price action:

LSK ALT COIN PRICE CHART

LSKUSD alt coin prices chart

LSKUSD Daily Chart for 03.11.2017

Taking a Top-down approach and you will notice that the weekly chart is bearish. From a technical point of view, it is highly likely that this bear LSK trend will continue.

For the past 3 weeks before this week’s candlestick, price action has been consolidating and mostly closing as bearish pin bars. $4.1 was a temporary support but that was breached with this week’s bear slide. It is worth noting that the 20 period MA and the resistance trend line in the daily chart is a reliable resistance. The current USD bull drive is causing divergence of BB. Notice the increasing relative distance between close of candlestick and the middle BB in the daily chart. As alt coin prices trend lower, chances of price action hugging the lower BB is high.

As a fact, the surge in bear volumes yesterday as price action tested lows of $3.6 and effectively breaking down this major support line at $4.1 is enough confirmation of that possibility. If alt coin LSK continue to loss value and price close below support, then we enter short in the lower time frames tomorrow.

DASH ALT COIN PRICE CHART

DASHUSD alt coin prices chart

DASHUSD Daily Chart for 03.11.2017

Alt coin DASH value hangs at how price action will react at $250. $250 is a round number with significance both in the daily and weekly chart. In the weekly chart, $250 is a confluence point with the 20 period MA while in the daily chart, it marks the base of a bull flag. Either way, we expect a strong reaction at that zone.

Stochastics are moving lower with pin bars forming as DASH trend lower. Already, from the look of things, USD bulls are in charge as the 20 period MA has a negative slope and is acting as reliable resistance line. Notice how price action has been reacting to it over the past 2 weeks. All candlesticks are closing below this flexible resistance line.

It is also important to note how yesterday’s highs tested the minor resistance, previous support, trend line at $308. I recommend short entries in the lower time frames. For trend traders, a break and a close below $250 means we load our USD positions.

IOTA ALT COIN PRICE CHART

IOTUSD alt coin prices chart

IOTUSD Daily Chart for 03.11.2017

After alt coin  IOTA broke below $0.38 on Wednesday, we expected a surge in USD bulls. Close below main support at $0.38 was significant. Anyhow, alt coin LSK closed as an inverted hammer but most importantly below $0.38 support line. That test also confirmed a double bottoms reversal pattern with retests of October 21 lows at $0.31 in the lower time frames.

For bear pressure to continue, then price action needs to trend lower despite yesterday’s bear pin bar. If alt coin IOTA bulls jump in, then today may end up as bullish concluding a 3 day reversal pattern called the Morning Star.

MONERO ALT COIN PRICE CHART

Monero alt coin prices chart

Monero Daily Chart for 03.11.2017

For the 47th trading day, alt coin Monero is find strong support at $75-$80. Even though the trend has a bearish skew, we have to wait for strong confirmation of USD bulls trigger sells. In the weekly chart, the same support range as in the daily chart and the 20 period MA is of important significance. Stochastics is bearish and swinging from overbought territory meaning we continue to sell in lower time frames including the daily chart.

However, in the daily Monero alt coin trading chart, stochastics are trending in the oversold territory. Because of this, we shift our attention to price action reaction at the 20 period MA resistance line.

My view is that, the minor support trend line and the middle BB will remain resistance as long as price action continue to close below them. For now, intraday traders should look to sell in lower time frames.  Swing or trend traders should wait for a clear trend before initiating positions. That will happen if there is a break out and close above/below this BB squeeze.

NEO ALT COIN PRICES CHART

NEOUSD alt coin prices chart

NEOUSD Daily Chart for 03.11.2017

Two things to note. Daily and weekly NEO trading charts are bearish. Secondly, the main support trend line at $24 was broken through yesterday. Because of these two development, a break out trade pattern is in play. Notice the break out on October 20 and a consequent retest of resistance on October 25 and 31 highs. USD bulls should aim at September 14 lows of $14.

All charts courtesy of Trading View

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