The altcoins market is in recovery mode and after more than two months of persistent sells, their momentum is fading. Though they still lack solid confirmation, price floors are morale boosting for coins as EOS, Tron, IOTA and even Litecoin which were heading lower. Next week’s price action would influence the short term price trajectory of most altcoins under review.Let’s have a look at these charts:EOS Technical AnalysisEOS Daily Chart by Trading ViewFirst, before taking a trading decision, note that EOS price action is in a down trend. Going forward we shall maintain this stance regardless of yesterday’s completion of a three bar reversal pattern, the Morning Star forming at around our first support line at $4.Overly, we shall retain yesterday’s EOS trade plan and the best way EOS buyers can confirm recent resurgence is if there are gains above $6, Aug 8 highs and our intermittent resistance.Once prices print above that level then we suggest short term, low size longs with immediate targets at $7 and later $9, the upper limit of the previous 30 day consolidation line. In the mean time though, aggressive can take longs with stops at Aug 4 lows at $4.Litecoin (LTC) Technical AnalysisLitecoin Daily Chart by Trading ViewYesterday’s trade set up points to a coin that is finding supports at our first bear target and main support line at $50.From the chart, LTC is up six percent and with that abnormal surge, we have a clear three bar bull reversal pattern with buyers aiming to clear and close above our first resistance level at $65.Though there are open positions for taking longs as the chart shows thanks to yesterday’s bullish engulfing candlestick, conservatives can always be patient and wait for our trade conditions to be met.In case of buys at spot price, stops should be at yesterday’s lows at $53 with first targets at $65 and $70.Stellar Lumens (XLM) Technical AnalysisStellar Lumens Daily Chart by Trading ViewLike EOS and most coins, Stellar Lumens prices are trying to break off from that eight day consolidation along 22 cents.If anything, yesterday’s gains are a glimpse of a shift of momentum backed mostly by positive fundamentals around XLM. As such, odds are our trading conditions would be met today or in the next few days as long as buyers step up their momentum.As highlighted in previous Stellar Lumens analysis, all we need for XLM longs to be valid are strong up thrusts and close above 26 cents and later 30 cents before we begin loading up longs. Before then, we shall be neutral view with a bearish leaning.Tron (TRX) Technical AnalysisFrom the NewsSo far, Tron is doing well adding 13 percent in the last day. There are several coin specific events that may be buoying prices including recent coin listing at BitBox and inclusion of TRX at LINE’s investment funds. Still, the announcement of the 9 million TRX by the network could be a boost. BitBox is even taking this initiative and in a first come first serve basis, the first 2000 persons to register with the exchange will receive 2000 TRXs from Tron. Additionally, those investing more than 50,000 TRXs at the exchange will earn a two percent interest through Aug 22.Technical AnalysisTron Daily Chart by Trading ViewIn this time frame, TRX is surging and apart from gaining a massive 13 percent, yesterday’s trade plan is now void.However, in the midst of all these, we note that sellers are still in charge and being reasonable enough, a two month’s bear trend cannot be invalidated in two days or so.While we acknowledge that TRX might be in bottoming, taking small long positions with stops at Aug 17 lows at 1.9 cents with first targets anywhere between 2.5 cents and 3 cents is ideal.IOTA (IOT) Technical AnalysisIOTA Daily Chart by Trading ViewAt current spot prices, IOTA is up 15 percent in the last day and printing clearly in the daily chart is a three bar bull reversal pattern around our first targets at 30 cents.But while the sentiment change to bullish, traders should take a cautious stand to avoid fading the market by taking longs in a steep bear market.For confirmation, today’s price action might shed light and perhaps influence our trade decision because any close above 55 cents or Aug 13 highs means we shall take our sell profits and initiate small size longs with stops at Aug 17 lows at 45 cents.Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Key PointsBitcoin price recovered nicely after forming a support base near $6,200 against the US Dollar.There was a break above a key contracting triangle with resistance at $6,375 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair may perhaps continue to move higher towards the $6,570 and $6,750 resistance levels.Bitcoin price is signaling more gains above $6,550 against the US Dollar. BTC/USD could accelerate once buyers gain momentum above $6,550-6,600.Bitcoin Price AnalysisYesterday, we saw a downside correction below the $6,300 level in bitcoin price against the US Dollar. The BTC/USD pair tested the $6,200 support where buyers emerged. The price formed a base near $6,200 and the 100 hourly simple moving average. Later, there was a fresh upward move and the price traded above $6,300 and $6,400. Moreover, there was a break above the 50% Fib retracement level of the last slide from the $6,650 high to $6,213 low.More importantly, there was a break above a key contracting triangle with resistance at $6,375 on the hourly chart of the BTC/USD pair. The pair is currently trading near the 61.8% Fib retracement level of the last slide from the $6,650 high to $6,213 low. Once it clears the $6,547 and $6,550 resistance levels, it could accelerate further higher. The next resistance could be around the last high at $6,650. Above this, the price will most likely test the 1.236 Fib extension level of the last slide from the $6,650 high to $6,213 low at $6,753.Looking at the chart, bitcoin is placed nicely above the $6,300 level. It seems like buyers are likely to take control above $6,500 in the near term. The important supports on the downside are $6,375, $6,300 and $6,200.Looking at the technical indicators:Hourly MACD – The MACD for BTC/USD is placed in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI is moving higher and is currently above the 55 level.Major Support Level – $6,300Major Resistance Level – $6,550
Key HighlightsETH price is gaining momentum and it could break the $304 resistance for more upsides against the US Dollar.There was a break above a key bearish trend line with resistance at $295 on the hourly chart of ETH/USD (data feed via Kraken).The pair might decline a few points towards $290 and $288 before climbing higher in the near term.Ethereum price is placed nicely in a bullish zone against the US Dollar, but it is struggling versus bitcoin. ETH/USD may soon break $304 to gain momentum.Ethereum Price TrendThere were mostly range moves above the $277 level in ETH price during the past few sessions against the US Dollar. The ETH/USD pair formed a decent support near $277 and later started an upside move. It traded above the 50% Fib retracement level of the last drop from the $331 high to $250 low. There were a couple of bullish candles formed above $280, but bulls failed to gain momentum.More importantly, there was a break above a key bearish trend line with resistance at $295 on the hourly chart of ETH/USD. The pair is now trading above the $290 level and the 100 hourly simple moving average. If the recent break is true and buyers gain traction, the price may well move past the $304 resistance. Above this, the next resistance is near the 76.4% Fib retracement level of the last drop from the $331 high to $250 low. Finally, the price might aim to test the last swing high at $331-332.Looking at the chart, ETH price is trading with a positive bias above $277-280. In the short term, there could be a tiny bearish reaction, but the price is likely to find support near the $282 and $277 levels.Hourly MACD – The MACD is showing positive signs in the bullish zone.Hourly RSI – The RSI is now placed well above the 50 level with a bullish angle.Major Support Level – $277Major Resistance Level – $304