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The altcoins’ volatility has decreased. As it usually happens, a trend is followed by a period of calm, which is then followed by a new trend.
Ethereum, ETH, Litecoin, Dash
Ethereum’s price could not fortify at an important level of $16. There was only one option after that kind of development - to continue its downward movement as a correction towards the long-term upward trend. Ethereum’s price has yet again approached the minimal target of the correction. For a more likely downward movement there needs to be a rebound towards the whole downward trend. That rebound will hint at the most probable scenario of a following trend. That way, the continued downward movement (should it happen) will be of a larger scale.
As was expected, Litecoin’s price underwent a false break through the key level of $4.45. That correction towards the downward trend could grow into a turn. But for a more probable turn the structure of the upward movement has to stay intact. When the structure of any trend breaks, it indicates that there was no support for that movement.
DASHBTC’s price is forming a narrow flat above an important level of 0.0120. Such a flat indicates that the bears are holding the advantage. During the whole rebound the structure of the trend has been staying intact, which gives a chance for the downward movement to continue.
Wolrd currencies are undergoing an upward correction after a joint fall. Most currencies have reached their minimal correction targets. That means that soon the market will have to decide again - wether to continue falling or to turn to growth, at least for a wave of flat that will last until the pre-Brexit levels. In case of a formation of flats, the impact on altcoins should be minimal.
The movement’s structure determines the amount of potential the future trend has. If the bears manage to hold the advantage, Ethereum’s price will undergo a new sharp fall. But several conditions are needed in order for that scenario to be fulfilled. Firstly, there’s a need for an upward rebound, which will indicate that the long-term upward correction is over, and a larger scale movement has begun. Secondly, the structure of the downward trend has to be preserved. A key level has formed at $14-14.3, near the Fibonacci level and accumulated volume. For a more likely downward impulse, Ethereum’s price has to NOT break that mark. The break through that line will indicate that the bears have stopped being a majority. In that case, a continued flat or the beginning of a formation of a turn to growth will be more likely.
One key level for Litecoin is at $4.09, near the accumulated volume line. That mark is responsible for the future trend. For a sharp growth the price has to NOT break through that level. Under such conditions, the upward movement will be more likely. In case of a break through the level of $4.09, the structure of the upward trend will be disrupted. In that case a flat will begin with the following choice of a direction.
DASHBTC has formed a widening flat.The level near 0.0120 has become a key resistance line. That is confirmed by the accumulated volume line near that level. Thus, the future movement has two possible scenarios. If the formation of a widening flat will continue, the price will yet again break through the 0.0120 line. The ending of the widening flat could provoke a new impulse. The future direction will depend on where the Dash’s price is going to fortify. The advantage of the buyers or sellers can and has to be determined at the limits of this flat.
The technical levels responsible for future trend structures of altcoins:
In case of no break through the level of $14 on Ethereum, the chances of a downward impulse are increased.
Litecoin will be most likely to continue going up, if the price doesn’t break through the key level of $4.09.
For DASHBTC it’s possible that the widening flat will end and a trend will begin. For such a scenario, there needs to be a fortification at either limit of this sideway movement.
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