Crypto Update: Another Bearish Day For Altcoins As Ripple Breaks $0.30
The major cryptocurrencies continue to diverge substantially, as although almost all of the top coins are sporting significant loses, Bitcoin and Monero continue to show stability in the face of the segment-wide selling pressure. On the other hand, the likes of ETH, XRP, and LTC are in very dangerous technical setups, as the short-term consolidation patterns seem to be breaking down, warning of a possibly violent downswing as soon as in the coming days.
Ripple already violated the key $0.30 level, and it continues to lead the way lower from a technical perspective. Ethereum is holding up above $200, while LTC is currently testing $85, and should the major altcoins move below support in a concerted fashion, things could get heated very quickly, especially in light of the broad weakness among the smaller coins and the several failed rally attempts during the consolidation period.
BTC/USD, 4-Hour Chart Analysis
Although Bitcoin also has been under some pressure today, it’s only slightly in the red just before the US close, and the short-term uptrend is clearly intact in the coin’s market. BTC is holding up well above the $11,300 level as well, and even as the top altcoins are threating with key technical breakdowns, it’s closer to a move towards the previous swing high, with a breakout to new highs also being a possibility.
Our trend model is still on a short-term buy signal thanks to the coin’s stability, despite being on a long-term sell signal, and while the segment-wide pressures could overwhelm the bullish short-term momentum, traders could hold on to their positions. Below $11,300, further support zones are found near $10,000, $9,200, $8,400, and $8,200, while the next major resistance zones are ahead near $13,000 and at the prior rally high near $14,000.
ETH/USD, 4-Hour Chart Analysis
Ethereum continues to show relative weakness and with today’s sell-off it is now below the weak rising short-term trendline that has been supporting it for several weeks now. The $200 support level is still in no immediate danger, but a breakdown looks very likely in the coming weeks, with an even earlier move below support being in the cards. While a recovery rally above $230 is still possible, and the short-term trading range is intact, traders should stay away from entering new positions here.
Our trend model is still on clear sell signals on both time-frames, and only sustained move above $230 would make an upgrade possible, but without signs of broad technical strength in the segment, any rally attempt would be very likely to fail. Below $200 further support zones are found near $180, and $160, while above $230, resistance levels are ahead near $260 and $275.
No Redemption for Ripple and Litecoin, as Key Breakdown Looms
XRP/USD, 4-Hour Chart Analysis
Ripple has been under severe selling pressure in recent days, and as we expected, the coin dipped below the key long-term $0.30 support today, threatening with a test of the next major zone near $0.28. The relatively weak coin looks ready to resume its bear market, but while all signs point to a bearish continuation, the short-term trading range is still intact, and a recovery rally still can’t be ruled out.
That said, traders should avoid entering positions in XRP, and even in the case o a broad rally attempt, the relatively stronger coins should be favored. Our trend model is still on clear sell signals on both time-frames, and below $0.30, strong support is found near $0.28 and $0.26, while resistance is ahead near $0.32, just above $0.33, and near $0.3550 and $0.3750.
LTC/USD, 4-Hour Chart Analysis
Litecoin is trading right at the $85 support, the lower boundary of the key $85-$90 zone, due to today’s sell-off, and the fact that the coin is still relatively weak, warns of a likely dip to $75 in the coming days. LTC is still stuck in a declining short-term trend, despite the brief periods of relative strength, and as the recent breakout attempt quickly failed, sellers are clearly in control of the coin’s market, and a violent downswing could be ahead in the coming weeks.
Our trend model is still on clear sell signals on both time frames, and while an upgrade is still possible, bulls would need to quickly step in to avoid a major technical breakdown, and odds favor the bearish scenario. Below $85, further support is still found near $75 and $64, with resistance zones ahead near $100, between $110 and $112, and near $125.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.