Crypto Update: Coins Barely Budge Amid Global Turmoil

While traditional financial markets are having their most volatile period since February the cryptocurrency segment is still an island of calm, even as that doesn’t change the still negative long-term trends. Today, the major coins are slightly lower again, and although the moves are not significant, under-the-hood, there were some negative developments.

Stellar/USD, 4-Hour Chart Analysis

The most bearish sign during the current lengthy consolidation is the lack of follow-through after the occasionally strong rallies in some of the majors, and today we saw deterioration in the markets of some of the recently stronger coins. Ripple, Stellar, and Monero are all among the weaker digital currencies today, despite their relative strength and the recent rally attempts.

BTC/USD, 4-Hour Chart Analysis

On the other hand, the relatively weaker coins continue to lag, while Bitcoin’s stability is still the most encouraging sign for bulls. BTC is little changed today, and the most valuable coin is still trading in the close vicinity of the $6400 price level, between the primary support zone near $6275 and the first major resistance level near $6500.

Despite the narrow trading range, the coin remains on a short-term sell signal in our trend model, and given the segment wide pressures, a move towards $6000 and $5850 is still likely in the coming weeks, with further support found between $5000 and $5100, and strong resistance is still ahead at $6750 and $7000.

Ripple and Ethereum Drifting Lower Again

XRP/USD, 4-Hour Chart Analysis

Ripple failed to build on its recent rally again, and although the coin is still holding up near the key long-term $0.42-$0.46 zone, we remain bearish regarding its short-term outlook. XRP faces strong resistance near $0.51, $0.54, and $0.57, and for now, there is no sign of the bullish momentum that it would need to get close to its highs from September.

With that in mind, a move below $0.42 is still likely in the coming period, and traders and investors shouldn’t enter new positions here, with further support zones found near $0.375 and $0.355.

ETH/USD, 4-Hour Chart Analysis

Ethereum continues to be the most important laggard in the segment, as it still failed to leave behind the $200 support/resistance level despite the quiet market, its previous very heavy losses, and the rally attempts in some of the other majors.  Today the coin is trading slightly below the key level again, but the technical setup is unchanged given the very small movements of the recent weeks.

As the broader declining trendlines are getting closer and closer, ETH could face selling pressure soon, even below the strong resistance zones near $235 and $260. A test of the bear market low near $170 is still likely in the coming weeks, with further support levels found at $180 and $160.

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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.

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.