These are the swings we were talking about. From the charts, Lumens and NEO which seemed to be on an uptrend are now trending lower and steadily moving towards previous lows.
It’s only LTC- and to some extent IOTA whose depreciation is moderate. However, if there is a dip past key support-prices are now in a consolidation in IOTA-then the fall might be steep in the coming sessions.
Let’s have a look at these charts:
Technically, for a moment, buyers seemed to be on the upper hand and after yesterday’s higher highs in the 4HR chart, we can see clear resistance at the main resistance trend line and the middle BB at $0.35.
Now, the thing is, the temporary bullish divergence pattern which was part of the reason for our long forecast is now invalid.
If prices close below $0.30 and the support trend line we can as well expect sellers to drive prices lower towards February 6 lows of $0.25 and then the 78.6% Fibonacci retracement level of $0.22 assuming the slide is strong.
This is why-considering the nature of yesterday’s price action-today’s price action is definitive and could potentially affect short to medium term price action and/or trend.
In the 4HR chart, IOTA prices are all over the chart and even if we use the middle BB-the 20 period MA-to fine tune prices, then it would be futile because price action looks to be in one big range.
You can see what I’m talking in the daily chart where since February 27 bullish break above, IOTA has been in a horizontal consolidation along the middle BB.
Net gain is zero and now that prices are below the middle BB in the 4HR chart, we expect strong support at around $1.80-that’s just below the middle BB in the daily chart.
Any buy pressure injection that could see prices back to $2 or February 27 highs is positive and in line with that day’s bullish break out pattern.
If not and sellers close below $1.8, then there is a possibility of prices drifting back to February 22 lows of $1.55 or even $1.2.
Yesterday’s forecast hit a dead wall and now sellers are slamming bulls as they race back to between $7 and $7.5 buy zone- at least that’s from our analysis.
That’s where EOS divider line we were talking about is at but regardless of this bear pressure I think we can a top down approach and have a better view of prices from the daily chart.
Here, we notice that the middle BB and prices around $8.5 and $9 remains a good loading point for sellers but that’s not really the point.
Over the last 2 months or so, EOS buyers haven’t enough momentum to push prices above $9 or even $10.
This is the reason why I will anchor my main support at $7 which is right at the 61.8% Fibonacci retracement level on the lower side and expect sufficient bullish reaction especially if today’s turn lower.
The confirmation it is we said and from this chart, we can clearly see that sellers are loading their shorts with every high.
Despite this, the question is, will there be a breach and possible close below $200 or even $180? It is yet to show and that’s why we should hold our guns and see what happens today to LTC price action.
It’s all about bears from this NEO chart and as we can see, sellers are still in charge with the middle BB and $120 looking likely to be broken if this pressure persist.
The deal is, we still have that support trend line and I’m still bullish until there is a close below $110 or there about in the daily chart.
Positional traders can steer away from this coin until after there are buy signals in the 4HR chart or where we see clear rejection of lower lows at the support line.
All Bitfinex, coinbase and Bittrex interactive charts courtesy of Trading View