Crypto Update: Breakdown Avoided Again As Coins Bounce Back
The major cryptocurrencies all bounced back today following yesterday’s broad sell-off with the relatively strong XRP leading the way higher from a technical perspective. The bounce left the underlying technical patterns intact in the segment, even as some of the relatively weaker coins, such as LTC and XMR outperformed the broader market. With that, bulls avoided another damaging leg lower in the ongoing downtrend, but there is still no evidence even of a short-term trend change.
On a negative note, the recently strong ETH failed to resume its counter-trend rally and BTC remained under pressure as well, and while today’s advance could be the beginning of a larger-scale move, the overall picture is still clearly t bearish. From a broader perspective, the segment is still within a bearish consolidation that started following the recent crash, and odds continue to favor another leg lower in the coming weeks.
BTC/USD, 4-Hour Chart Analysis
While BTC bounced back together with the broader market today, recapturing the $8,000 price level in the process, it remains below the key support/resistance levels that have been in focus in recent weeks. The coin is still likely to dip below its prior high, and downside risks remain high here, despite the fact that the short-term trading range is intact.
The coin is still on sell signals on both time-frames in our trend model, with support zones found near $7,800, and $7,600, and with resistance zones ahead near $8,200, $8.400, $8,650, $9,200, and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH remains stuck below the key $180-$185 support/resistance zone despite today’s rally and it continues to trade below the correction pattern that developed following the recent crash. That said, the coin remains well above the next major support zone, and bulls still can hope for a trend change, even though odds favor more downside.
Our trend model is still on sell signals on both time-frames, with support zones found near $160, and $145, and with further resistance zones ahead near $200 and $230.
XRP Tests $0.30 Again As LTC Bounces Off Support
XRP/USD, 4-Hour Chart Analysis
XRP managed to hold within its rising short-term trendline saving its short-term buy signal in our trend model as well. The coin respected the $0.28 support level, but it remains below its recent swing high and the key $0.30 level, with the broader downtrend clearly being intact in the relatively weak coin’s market.
XRP is still on a long-term sell signal in our trend model, with support zones found near $0.28, $0.26, and $0.2475, and with resistance zones still ahead near $0.30 and $0.32.
LTC/USD, 4-Hour Chart Analysis
After testing its crash low yesterday, LTC bounced back hard today, getting close to the $56 level yet again. The $51 support level held up, for now, but the ongoing downtrend remains intact, and we still expect a move below the coin’s trading range.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones now ahead near $56, $64, and $75, and with major support zones found near $51, and $44.
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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.