As altcoins drag lower syncing with Bitcoin (BTC) drop, fundamentals and technical formations are clearly divergent. Yes, sellers are in charge and are even cancelling the last Stellar Lumens (XLM) bullish attempts of mid-July. However, while we are yet to see proper sell signal below key support lines in Litecoin (LTC), EOS and IOTA for example, we have a bearish leaning thanks to trend resumption of last week and that strong bearish engulfing candlestick by week ending Aug 5.
Let’s have a look at these charts:
EOS Technical Analysis
From the News
- You can now withdraw EOS from Binance
Technical Analysis
By dropping one percent yesterday, it means prices are narrowly consolidating along our main support line and sell trigger.
We have been clear in our past EOS technical analysis and what we wait now is a conclusive, clear close below $7. Should that happen today then we shall execute according to our trade plans with targets at $4 now that our bear break out pattern would have been confirmed.
If not and EOS find support, then we shall revert to neutral and see if EOS buyers will muster enough momentum to clear July 31 highs at $7.5
Litecoin (LTC) Technical Analysis
Even with attempts of higher highs on Aug 5, sellers were too overwhelming and yesterday ended up bearish with a long upper wick signaling strong bear pressure.
The way prices are aligned means our shorts are valid and our overall Litecoin (LTC) trade plan is well on course. All we need is a convincing break below $70, the lower limit of our 40 day trade range and perhaps a whole bear candlestick closing below that support line.
From there on, we shall short in line with the trend defined by June 10 bears and aim for $50 in the short term.
Stellar Lumens (XLM) Technical Analysis
By sliding two percent in the last 24 hours, Stellar Lumens (XLM) sellers are edging closer to the upper limit of our former buy trigger now support at 22 cents. Then, as per our laid out XLM trade plans, we anticipate XLM to find support with buyers jumping in.
However, should that not come to pass and sellers breach below it and 20 cents as they confirm the strong bearish engulfing pattern in the weekly chart, then we shall short and sync with the overall trend in the weeklies.
After all, any close below 20 cents might drive XLM prices towards 2018 lows and if bears are consistent, sellers should aim for 15 cents and later 8 cents. On the flip side, for Stellar Lumens (XLM) buyers to reinvent themselves, then the first attempt should be to reverse Aug 4 losses with a remarkably high trading volumes showing participation.
Tron (TRX) Technical Analysis
As Tron (TRX) sellers step up, our first targets at 2.5 cents are likely to be hit within this week.
Remember, week over week, TRX is down two percent in the last day and when we check the weekly chart, odds are we might see a confirmation of that bearish engulfing pattern that broke below July attempts of higher highs.
In any case, my recommendation is to sell TRX with every high with ideal sell zone anywhere between 3 cents-3.5 cents with stops at 4 cents and first targets at 2.5 cents and later 2 cents.
IOTA (IOT) Technical Analysis
As expected, news of IOTA Hub is not only monumental from a development perspective but it’s also asserts IOTA valuation going forward.
That’s partly why we saw a sudden injection of buy volumes with IOTA temporarily gaining 20 percent before shrinking back to normal levels along 90 cents as market participants interpret what it meant.
Overly though, we remain bearish and the only time this view shall be cancelled is when we see IOTA buyers thrusting above $1.
In the meantime, chances of lower lows are high. And once we see a strong close below 90 cents, we shall prepare to short on pull backs with first targets at 65 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.
