Unlike other coins, alt coin NEM continue to inch higher. DASH, IOTA, NEO and Monero are low even after that bullish divergence after November 5. This is indicative of strong bear pressure evident in the weekly chart where stochastics are extremely bearish with %k and %d diverging. Let’s review what happened in all other common alt coin pairs yesterday:
ALT COIN NEM PUSH HIGHER IN ALT COIN NEM TRADING CHART
Within a 9 month period, NEM appreciated from lows of $0.007 to a record $0.35 representing a 3400% surge. In the first week of November, alt coin NEM prices corrected. This was after a bear divergence in the weekly chart.
That bear divergence is what caused prices to retest the 20 period MA and break below it in the last week of October. It is important to note that alt coin NEM current recovery is a retest of support. This support is represented by the 20 period MA in the weekly chart.
Because there is a buy signal in the daily chart in the larger bear trend we shall continue buying until a sell signal is formed. The upper limit of the descending channel between $0.22 and $0.25 shall be our first resistance zone.
We shall wait for price reaction and stochastic sell signals before shorting. Also note that $0.22-$0.25 resistance zone falls squarely at 50% Fibonacci correction a level as drawn from August-October hi-lo.
20 PERIOD MA IS A RELIABLE RESISTANCE IN DASH ALT COIN TRADING CHART
It is important to note that even though there was a bullish divergence pattern at week ending November 05, the higher time frame DASH price action is actually bearish.
The 20 period MA and $250 remain important support levels even in the weekly chart. While $250 has been retested severally, the 20 period MA in the daily chart and the resistance trend line continue to remain our immediate resistance zone.
However, if price breaks above $290, $320 and $340 is our ultimate resistance zone. Furthermore, $320-$340 zone is also a confluence point representing the always significant Fibonacci 50% correction level.
MAIN SUPPORT AT $0.38 BROKEN IN IOTA ALT COIN TRADING CHART
The Morning star reversal pattern and the strong retest of support line over the past week didn’t prevent USD bulls from trending lower. After all, it is the bears that are in charge in weekly chart and the rally is really strong.
USD bulls will likely drive prices lower towards $0.24 now that price action has broken below our main support level at $0.38. IOTA price action is also below the 20 period MA which has been a reliable resistance line over the past 2 months.
In the mean time the slope of the middle BB and the resistance trend line determines the overall IOTA trend. The slope is negative so it means we continue selling. USD bulls should look to enter short when there is a stochastic sell signal in lower time frames.
RETEST OF 20 PERIOD MA IN MONERO ALT COIN TRADING CHART
Monero will likely depreciate going forward. This move down is pure interpretation of price action behavior over the past few days. First of all, Monero is retesting the long term support more that it is testing the resistance line at $100 meaning sell pressure is high.
Secondly, there is a bear pin bar in week ending October 23. Afterwards, Monero dropped lower failing to close above the 20 period MA in the daily chart. Despite testing lows of $75 where Monero bulls pushed prices back within the trading range, the previous higher highs relative to the lower BB support trend line acted as a price cap.
Now prices are falling back towards support with stochastics trending at oversold zone in the daily chart. I will advise sellers to enter short especially if Monero close below support line at $80.
BEAR BREAK OUT TRADE IN PLAY IN NEO ALT COIN TRADING CHART
As the break out trade continues, USD bulls are driving NEO prices lower. The 20 period MA at $24 in the weekly chart is acting as immediate support. If USD bulls break below it, the ultimate bear target will be $14 which is also June 2017 highs.
Bear momentum in the weekly chart and is and look at how NEO prices are rebounding off the middle band confirming the bearish pressure in the weekly chart.
In my opinion, I advise NEO sellers to ramp up their USD positions as long as prices remain below $30.
All charts courtesy of Trading View
The post ALT COIN NEM PUSH HIGHER DESPITE STRONG BEARISH PRESSURE appeared first on NEWSBTC.
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
