Crypto Update: Coins At Crossroad As Volatility Plunges

The cryptocurrency segment is having a very quiet start to the weekend, as yesterday’s volatility compression continues. The major coins are virtually unchanged compared to yesterday’s closing prices, but the dynamics of the past few days remain apparent. ETH is still the strongest among the top coins, from a short-term technical perspective, with XRP being the weakest. BTC couldn’t build upon its stability and since the smaller coins haven’t shown strength either, the correction will likely continue.

Our trend model continues to be bearish on the short-term time-frame, and even though the long-term picture remains bullish, traders shouldn’t enter new positions here. The short-term momentum readings are mostly neutral, and while the coming days could remain choppy, we expect another spike in volatility before the freshly formed uptrends resume.

BTC/USD, 4-Hour Chart Analysis

BTC failed to show relative strength in the past 24 hours, still being stuck well below the key $10,000 price level. The coin remains in a safe distance of its previously dominant long-term trendline, and as the extremely bullish sentiment levels eased, downside risks are on the decline. With that in mind, long-term investors could already add to their positions on the short-term dips, even as the correction will likely continue.

BTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH has been holding up relatively well compared to its closest peers in recent days, and the leader of the last leg of the rally settled down near the key long-term $260 level in the past 24 hours. The coin is still stuck below its steeply rising short-term trendline and given the lofty gains of the past few weeks, and even deeper correction is likely.

Our trend model is still on a short-term sell signal while being on a long-term buy signal, with major support zones found near $230, and $200, and between $180 and $185, and with resistance zones ahead near $260, $275, $290, and $300.

XRP Eyes Breakdown As LTC Tests $75

XRP/USD, 4-Hour Chart Analysis

XRP is still clearly the weakest major on all time-frames, and even though it is holding up above its recent correction low, it looks ready to test the $0.26 support zone again. The coin is trading in a well defined corrective pattern, but it’s only slightly above its previously dominant long-term trendline, and a move below that trendline is still in the cards despite the bullish segment-wide developments.

Our trend model is on a short-term sell signal while still being on a long-term buy signal with support zones found near $0.26, $0.2475, and $0.23, and with resistance zones ahead near $0.28, $0.30 $0.32, $0.33, and $0.3550.

LTC/USD, 4-Hour Chart Analysis

LTC managed to gather some relative strength in the past 24 hours, and it drifted up to the $75 support/resistance level after recapturing $72.50 yesterday. The coin is also close to the upper boundary of its corrective technical pattern, and while the correction is still likely to resume, its relative strength is a positive sign for the whole segment, as LTC was among the early leaders of this year’s rally.

LTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found $72.50, $64, $56, and $51, and with resistance zones ahead near $75, $85, and $90.

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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.

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.