Crypto Update: Coins Drift Lower But Market Remains Stable

Relatively quiet and choppy trading continues for the second day in a row in the cryptocurrency segment. Although the major coins are all lower, and no meaningful technical progress has been made in the past 48 hours, the advancing short-term trends are still intact. The top digital currencies also held up above their key support levels, and as volatility remains low, and we see no signs of weakness among the smaller coins, the counter-trend rally might continue in the coming days.

That said, the long-term outlook remains bearish, and although the recent swing lows are in no danger here, only BTC has the chance of a long-term trend change. Also, still, only LTC managed to climb above last week’s swing high among the top coins, so downside risks are still high, and traders should continue to apply strict risk management rules, despite the short-term buy signals in our trend model.

BTC/USD, 4-Hour Chart Analysis

BTC is still trading between the $8,000 and $8,200 price levels, as the coin continues to hold up above its crucial long-term trendline. The coin still hasn’t managed to break out above the trendline in a sustained fashion, but the short-term trend remains positive and the coming days could see major fireworks in BTC’s market.

BTC is on a short-term buy signal in our trend model, while still being on a long-term sell signal, with support zones found near $7,800, $7,600, $7,400, and $7,000, and with resistance ahead near $8,200, $8,400, and $8,650.

ETH/USD, 4-Hour Chart Analysis

While ETH once again tested the key long-term resistance zone near the $145 price level, it once failed to recapture it and it turned lower together with the broader market. The coming days could be crucial for the second largest coin as well, and while from a long-term perspective, it remains relatively weak, a breakout could be a huge plus for the whole segment.

Our trend model is on a short-term buy signal while still being on a long-term sell signal, with major support zones found near $135, $130, $120, and $100, and with resistance zones ahead near $145, and $160.

XRP Fights For $0.21 As LTC Enters Pullback

XRP/USD, 4-Hour Chart Analysis

XRP continues to trade in a bullish short-term consolidation pattern and even though it is threatening with a move below key long-term $0.21 level, it remains well above its prior post-crash range, leaving the short-term uptrend intact. The coin is still very weak from a long-term perspective, and bulls would need a major change in its market to consider long-term positions, despite the current rally.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.23, and $0.2475.

LTC/USD, 4-Hour Chart Analysis

LTC has lost the most ground today after leading the way higher last week, but despite the pullback, it remains above its recent short-term swing high, maintaining its leading position, as far as short-term technicals are concerned. Traders could still enter new short-term positions, even as the short-term momentum indicators are still overbought, but strict risk management rules remain vital due to the hostile long-term setup.

LTC is now on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51 and $56.

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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.