Crypto Update: Coins Drift Lower Again as Ripple Pump and Dumps
The major cryptocurrencies continue to trade without a clear direction We already saw a Litecoin-led rally attempt this week, and today, Ripple spiked higher briefly, pulling the other top coins with it. Despite the pop, the market remains under selling pressure and none of the majors managed to maintain bullish momentum. The total value of the market is still stuck near the $130 billion level, so short-term capital flows continue to be neutral.
With the clearly bearish long-term setup and this week’s failed moves in mind, caution is still warranted, even in the case of the relatively stronger coins, such as Litecoin. With the top three coins still showing relative weakness, odds continue to favor the resumption of the segment-wide bear market once the current consolidation runs its course. That said, the counter-trend might still resume, but a sustained rally remains unlikely here.
XRP/USDT, 4-Hour Chart Analysis
Ripple has been one of the most active coins today following several days of negligible activity, and the coin attempted a break-out above the initial resistance level near $0.32. The move quickly failed, for now, and XRP is now back in the very narrow range that has been dominant in recent days.
The failed break-out proves the selling pressure in the coin’s market yet again, and our trend model remains on clear sell signals on both time-frames. A move below $0.30, towards the $0.28 and $.26 support levels still seems likely, with key resistance levels ahead near $0.3550, and $0.3750.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is still glued to the key $3850 price level, and the coin is trading in a progressively narrowing range, with trading volumes also being well below average. The coin remains on sell signals on both time-frames, and barring a move above the crucial long-term support/resistance zone between $4000 and $4050, traders and investors should still not enter positions here. Support zones found near $3600, $3450, $3250, and $3000, while the next key resistance zone is ahead near $4450.
Altcoins Drift Lower as Dash Tests Swing High
LTC/USD, 4-Hour Chart Analysis
The still relatively strong Litecoin is consolidating below the $56 resistance level in today’s bearish environment, and although the segment-wide trends are hostile, LTC is still on a short-term buy signal in our trend model.
Bulls are looking for a move above $60 which would likely trigger a test of the $64 resistance, while a drop below $51 would be very negative for Litecoin, in light of the ongoing bear market, with further support levels found near $48, $44, and $38.50.
ETH/USD, 4-Hour Chart
Ethereum is trading near the $130 level despite today’s intraday rally attempt, with the short-term consolidation pattern still being intact. Ethereum is still well off the line-in-the-sand $145 resistance level and given the failed rally attempts the immediate outlook is also deteriorating for the coin.
With that in mind, a move towards $122 and the key long-term $95-$100 zone is still likely, and traders and investors should still stay away from new positions in ETH. Above $145, further strong resistance zones are ahead near $160 and $180, while short-term support is found in the vicinity of the $120 price level.
DASH/USD, 4-Hour Chart
Dash broke out of its short-term trading on volume yesterday, and it briefly topped its February swing high, but that wasn’t enough to trigger an upgrade in our trend model. A new sustained swing high would confirm another leg higher in the counter-trend move, but for now, the bearish long-term setup and the segment-wide pressures still warrant caution.
Dash is also testing a declining trendline, which marks the upper boundary of a broader consolidation pattern, but the long-term downtrend is in no danger here. A new swing high could lead to a test of the $95 and $105 levels, while strong support zones are still found near $80, $76, and $68.
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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.