Crypto Update: Coins Rebound as Bearish Momentum Fades

The major cryptocurrencies are showing signs of stability today, despite yesterday’s broad-based sell-off, and although the top coins are only sporting modest gains, a sharp downswing has been averted, for now. The strep dip in global risk assets likely helped the segment, but today’s rebound hasn’t changed the bearish overall picture for the major digital currencies, as especially long-term technicals continue to be hostile.

Smaller-cap coins, such as Cardano IOTA, and Tezos, have been leading the way higher today, but Bitcoin is also showing technical strength, even though its gains are limited and the most valuable coin is still stuck below crucial resistance. The same is true, for BTC’s closest peers, and although Litecoin remains in a bullish short-term trend, the top coins remain weak, and without the participation of the large-cap cryptocurrencies, the rallies continue to be highly suspicious.

LTC/USD, 4-Hour Chart Analysis

Litecoin drifted higher today, but it stayed below the $60 price level, with volatility still being very low compared to the rest of the market. The coin is still within its short-term uptrend, as yesterday’s pullback didn’t affect it meaningfully. While the momentum of the recent upswings has been suspiciously weak, the counter-trend move might still continue.

Our trend model remains on a short-term buy signal while being on a clear long-term sell signal, and traders could still enter short-term positions here. The next target zone is still found near $64, while support levels are found near $56,$51, $48, and $44.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is back near the key long-term $4000-$4050 support/resistance zone thanks to today’s recovery, but despite its relative strength, the coin is still yet to make meaningful technical progress, and the bearish long-term is firmly intact. A move above the primary zone, which would be a very positive sign for the whole segment, could open up the way towards the $4450, but even that wouldn’t mean that the bear market is over.

With that in mind, traders should still not enter positions here, even for short-term profits, and our trend model remains on sell signals on both time-frames, with support zones still found near $3850, $3600, $3450, and $3250.

Ethereum Holds $130 as Ripple Recovers After Scare

ETH/USD, 4-Hour Chart

Ethereum is still in the no-mans-land between the strong $130 support and $145 resistance levels, but the fact that it managed to hold above the primary support zone is an encouraging sign for bulls. The immediate outlook for ETh is still neutral, but the coin continues to be among the relatively weaker majors and barring a move above $145, traders and investors should stay away from entering new positions here. Below $130 level, further support is found near $112 and between $95 and $100, while resistance is ahead at $160 and $180.

XRP/USDT, 4-Hour Chart Analysis

While Ripple showed worrying weakness during yesterday’s dip, the coin managed to climb back above the $0.31 level that has been at the center of attention for weeks now. XRP is still yet to make a decisive move out of its short-term trading range, and although the outlook for the coin is still firmly bearish, a broad-based rally could propel a short-term advance above the primary resistance zone near $0.32.

Primary support is found near $0.30 with further key levels at $0.28 and $0.26, while strong resistance levels above $0.32 are ahead near $0.3550, and $0.3750, and our trend model remains on sell signals on both time-frames.

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.

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.

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