Crypto Update: Another Bounce Fails as Ethereum and Ripple Still Weigh
Strong selling pressure continues to dominate the cryptocurrency segment, with the two largest altcoins Ethereum and Ripple leading the way lower, trading on new lows after the weak bounce of the last couple of days. All of the majors are sporting steep losses, with none of the top 50 coins being in the green, but Bitcoin continues to hold up relatively well in the rout, still hovering above the key support zone near $7650.
BTC/USD, 4-Hour Chart Analysis
BTC is clearly in a short-term uptrend, but for now, the bearish momentum is weakening, and the coin is right at the recent swing low, while the weaker majors already violated that level. Despite the relative strength, the coin hasn’t given a short-term buy signal, and traders and investors should still wait with new positions in BTC.
ETH/USD, 4-Hour Chart Analysis
Ethereum is the most important laggard in the segment, as the coin couldn’t find footing since the reports regarding the Google ad-ban, with the price of the token breaching the February low today.
Primary support is now at $500, and the coin faces strong resistance near $575 and $625 even before the key $740-$780 zone. Short-term traders should still stay away from entering new positions, with the strong downtrend being intact, while long-term investors could add to their holdings here.
Altcoins Still Looking Bleak as Several Majors Hit New Lows
LTC/USD, 4-Hour Chart Analysis
Litecoin is still among the few relatively strong coins, although Monero, ETC, Bitcoin Cash, and IOTA are also showing some stability amid the broad selloff, holding up above or at the weekly lows.
LTC is trading just above the $150 support level, which also mark the Thursday swing low, and the positive momentum divergence continues to be present. That said, the coin is still only neutral forma short-term perspective and traders should still wait before entering the market, with strong resistance ahead between $170 and $180.
NEO, Ripple, Cardano, Stellar, and Dash are all among the weaker majors, violating the recent lows of the downswing, although Ripple is only marginally below the key level and a quick recovery would be an early bullish sign.
As the downswing matures, traders should look for an increasing number of coins showing positive signs before speculating on a reversal, as there are still plenty of coins dragging the segment lower.
We will take a look at the long-term prospects of the majors following the selloff later on this weekend.
Featured image from Shutterstock
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.
