Tanya Abrosimova
Independent Analyst
- ETC/USD gives back some Asian gains.
- The upside trend is likely to resume rather sooner than later.
Ethereum Classic (ETC) is one of the best-performing cryptocurrencies out of top-20. The coin has gained over 18% in recent 24 hours and hit $8.40 high before retracing to $8.07 by the time of writing. Now it is the 17th largest digital asset with the market value of $886 and an average daily trading volume of $1.1 bln.
On the daily chart, ETC/USD has closed the price gap created in mid-November by a sharp collapse from $7.45 to $6.23. This development creates a positive technical background and signals that the coin is ready to resume the upside recovery. The Relative Strength Index (RSI) also points upwards; however, the indicator stays in the overbought territory, which may signal that a short-term correction may be in store.
Strong support is created by psychological $8.00; thus, Once it is cleared, the downside is likely to gain traction with the next focus on $7.00 (SMA50 1-hour) and $6.70 (the upper boundary of the recent channel and SMA100 1-hour). On the upside, a sustainable move above the recent high of $8.40 will open up the way towards psychological $9.00 and $10.00.
On the intraday level, the technical picture supports the retracement scenario. Considering that the intraday RSI has already moved outside an overbought territory, the downside correction is likely to be short-lived.
ETC/USD, daily chart
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