Crypto Update: Coins Edge Lower In Quiet Trading

The cryptocurrency segment is experiencing a shallow pullback following last week’s explosive altcoin rally. The past 24 hours saw a low volatility dip that left the advancing short-term trends intact, with the majors all holding up above key support levels. Most of the coins are still, at least slightly overbought from a short-term perspective so the correction could continue in the coming days, but with the long-term breakouts being safe, the rally could resume afterward.

Our trend model is now mixed on the short-term time-frame with several coins triggering downgrades to neutral due to the stretched rally, but the long-term outlook improved significantly in the last couple of weeks. Traders should still be cautious due to the proximity of the previously dominant declining trend channels, but the odds of a confirmed long-term trend change in the segment are increasing.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade in a narrow consolidation range above the key $9,200 support/resistance level and volatility remains very low in its market. The coin hasn’t followed the top altcoins lower in the past 24 hours despite showing relative weakness recently and that could mean that a bullish rotation is underway. BTC cleared its overbought short-term momentum readings, and as the advancing trend is intact, it could be ready to turn higher again as soon as in the coming days.

BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

ETH remains above the key long-term $180-$185 support/resistance zone despite the slight pullback and it is holding on, even if just barely so, above its recently broken long-term trendline. The coin is still overbought from a short-term perspective, but the strong advancing trend is intact and despite the downside risks, bulls have a good chance to confirm the breakout in the coming weeks.

Our trend model is on a neutral short-term signal while being on a long-term buy signal, with major support zones found between $180 and $185, and near $160 and $145, and with resistance zones ahead near $200 and $230.

XRP Stuck Near $0.25 As LTC Edges Lower

XRP/USD, 4-Hour Chart Analysis

XRP continues to severely lag its closest peers even amid the current pullback, and it’s still trading below its dominant declining trendline. The coin failed to participate in the bullish rotation, but it’s still holding up above the $0.2475 support/resistance level, near its prior swing high, and it remains bullish from a short-term perspective.

XRP is on a short-term buy signal and a long-term sell signal in our trend model, with support zones now found near $0.2475, $0.23, $0.21, and $0.20, and with resistance zones ahead near $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

Compared to its lofty gains, LTC is experiencing a very mild correction, dipping just below the $70 level, and already getting close to clearing its overbought momentum readings. The $72.5-$75 resistance zone is towering ahead of the coin, but the advancing short-term trend and its long-term breakout are both intact, and even a deeper correction would leave LTC among the strongest majors.

LTC is on a neutral short-term signal in our trend model, while being on a long-term buy signal with support zones now found near and $64, $56, $51, and $44, and with resistance zones ahead between $72.50 and $75 and near $85.

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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.