Crypto Update: Coins Edge Lower After Thanksgiving Weekend

The major cryptocurrencies have all been drifting lower today in early trading, similarly to last Monday’s session, and after Friday’s failed rally attempt, the top coins are back in their initial post-crash ranges. The broader bearish trends remain clearly intact in the segment, and as the short-term momentum readings are not oversold anymore, another leg lower in the ongoing downtrend could soon begin, with still no bullish leadership present in the market.

On a positive note, the prior swing lows are not in immediate danger, although the relatively weaker coins could quickly test those levels again. XRP and LTC have been the weakest among the top coins in recent days, while the previously weaker BCT has been holding up well and ETH has also been showing encouraging stability, staying over the key $145 support level. Our trend model remains bearish on both time-frames, and until we see clear signs of technical strength, traders should stay away from entering new positions.

BTC/USD, 4-Hour Chart Analysis

After briefly breaking out above the $7,600-$7,800 support/resistance zone and its declining short-term trendline, BTC erased most of its technical gains over the weekend. The coin is back the steeply declining trendline and even the $7,400 level, and even though last week lows are in a safe distance, for now, BTC is still very likely to test them in the coming weeks. The consolidation period could still continue but downside risks remain high here.

The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH is trading just above the key $145 support/resistance level following the failed Thanksgiving rally, and with that, the post-crash consolidation pattern remains intact. The coin is still above the steeply declining short-term trendline, but even as its prior swing low is roughly 10% below the current price level, another volatile move to new lows could be ahead in the coming weeks.

Our trend model remains on sell signals on both time-frames, with support zones found near $145 and $130, and with resistance zones ahead near $160, between $180 and $185, and near $200.

XRP Fails At $0.23 as LTC Bleeds Lower

XRP/USD, 4-Hour Chart Analysis

XRP’s rally attempt ran into strong resistance near the key long-term $0.23 level, and since then, the coin has been drifting lower towards its swing low. XRP is still relatively weak from a long-term perspective and despite the brief period of short-term stability, the bear market looks ready to continue, as soon as in the coming days.

XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC also dropped back to its post-crash consolidation zone, and it continues to show clear weakness compared to its closest peers. The coin is just trading above the key $0.44 level, well within its declining short-term trend, and it seems to be the most likely candidate to lead the next leg lower in the ongoing segment-wide downtrend.

LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51, $56, and $64.

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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.