Crypto Update: Coins Lower in Choppy Trading

Summer conditions have been dominating the cryptocurrency segment in recent days as the majors failed to gather bullish momentum after the oversold bounce of the second half of last week. The technical setup didn’t change much in the top coins, although the consolidation cleared the short-term oversold momentum readings.

Ripple remains the strongest altcoin from a short-term perspective after its strong oversold rally, while Bitcoin is the most stable in the whole segment. That said, as Ripple is still in a declining broader trend, well below the structural break-down level from two weeks ago, traders should be cautious with new positions. Also, Bitcoin failed to move above the $6500 level, so the largest coin didn’t trigger a short-term buy signal, leaving the overall picture overwhelmingly bearish.

ETH/USDT, 4-Hour Chart Analysis

Ethereum is still among the weakest majors, and as it failed to stay above $300, and spiked below $275, a renewed short-term sell signal is very close, while the long-term sell signal is clearly in place. ETH cleared the short-term oversold momentum readings, and now a test of the lows near seems likely even as from a longer-term perspective the coin is still stretched on the downside. Above $300 strong resistance is at $335, while the next level of support is near $235.

BTC/USD, 4-Hour Chart Analysis

Bitcoin has been trading in a narrow range in the last few days, as the market settled down near the $6500 level. The coin spiked below the short-term resistance near $6275 in late trading, but with no clear momentum in the market, BTC remains neutral from a short-term standpoint. As the long-term support level near $5850 is still standing, Bitcoin also avoided a long-term sell signal so far, but traders still shouldn’t enter new positions.

Still No Leadership Present as Coins Fail to Join Rally

LTC/USD, 4-Hour Chart Analysis

While correlations broke down somewhat during the bounce, the conditions for a broader trend change are still not met, as despite Ripple’s strength and Bitcoin’ stability there is no strong evidence of accumulation among the majors. Litecoin and Monero failed to build on the early signs of strength that they showed during the latest leg lower, and the other relatively weak coin, like NEO, Dash, and IOTA continue to show vulnerability.

XRP/USDT, 4-Hour Chart Analysis

With all those in mind, the rally in Ripple remains suspicious, despite the spike up to $0.375. The coin is currently trading in a choppy consolidation pattern, stuck between the $0.30-$0.32 zone and the $0.35 resistance level. While the short-term buy signal remains intact for now, a dip below $0.30 would warn of a test of the lows near $0.26.

Featured image from Shutterstock

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.

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.