Crypto Update: Coins Flatline as Litecoin Signals More Trouble Ahead

The underlying trends haven’t changed today in the cryptocurrency segment, since the major altcoins are still drifting sideways, consolidating in the wake of this week’s technical breakdown while BTC is trying to form a higher swing low above the key $9,200 support level. The most valuable coin is still the strongest from a technical perspective among the majors but it’s unlikely that alone it could turn the bearish tide, with none of the top altcoins showing signs of strength.

As sellers remain in control of the overwhelming majority of the smaller coins as well, there is no indication of even a short-term trend change despite the fact that the short-term momentum indicators are showing oversold readings. For now, traders should remain defensive even towards the relatively strong BTC, and they should stay away from entering new positions in altcoins, as downside risks are still high across the board and our trend model continues to be on sell signals on both time-frames.

BTC/USD, 4-Hour Chart Analysis

BTC is still showing signs of encouraging stability and while it remains well below the $10,000 price level and the coin is still in the no-man’s-land between that and the key long-term support/resistance zone near $9,200. The coin is still within a broad triangle consolidation pattern, and barring a sustained move below $9,200, it could even resume the larger-scale advance in the face of the bearish segment-wide pressures.

In light of the severe weakness among altcoins, another downswing is still more likely, and our trend model is still on sell signals on both time-frames. Below the initial zone near $9.200, further support zones are found near $8,400 and $8,200, while resistance zones are still ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH continues to trade in a very narrow range near the $168 price level, and the coin is still very close to its recent multi-month low, even though the crucial support zone near $160 is not in immediate danger. The coin is clearly showing weakness compared to BTC and that’s a negative sign for all of the altcoins, especially as LTC and XRP are also in precarious technical setups.

The short-term downtrend remains intact in ETH’s market, and while a broader counter-trend move could be ahead following months of steep losses for altcoins, we still don’t see signs of accumulation.  ETH is still on sell signals on both time-frames in our trend model, and below the initial support zone near $160, the next major level is found at $145, while above the key long-term $180-$185 zone, resistance levels are ahead near $200 and $230.

Ripple Drifts Higher as Litecoin Eyes Another Breakdown

XRP/USD, 4-Hour Chart Analysis

Ripple has been the weakest among the majors for several months from a technical perspective but now, it’s a tad stronger than the likes of LTC and ETH following its recent failed spike higher. This stability is still no reason to buy the coin, and it remains in a very weak technical position form a broader perspective, but should it recover above $0.26 in a sustained fashion, a longer consolidation might begin in the coin’s market.

For now, XRP is still on clear sell signals on both time-frames in our trend model, and traders shouldn’t enter new positions here, as even if the coin enters a consolidation phase, it is still very likely to resume its bear market. Initial support is still found near $0.23, while above the $0.26 level, strong resistance zones are ahead near $0.28, $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

Despite a brief spike above the $64 level, Litecoin is trading under clear selling pressure, and after leading the way lower during this week’s breakdown, it looks ready to hit new lows yet again. The coin’s relative weakness continues to be apparent despite the oversold short-term momentum readings and its recent steep losses, and should it move to new lows in the coming days, the whole segment could resume the downtrend.

Our trend model is still firmly on sell signals on both time frames, and since the recent breakdown level is well above LTC’s current price range, a failed breakout pattern is highly unlikely to form. Below $64, the next major support zone is found near $56, while resistance zones are ahead near $75, between $85 and $90, and near $100.

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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.