Crypto Update: Coins Rebound but Selling Pressure Persists
The cryptocurrency market is experiencing a relief rally today after several days of dominantly bearish price action in the majors. The rebound left the short-term technical setup unchanged, and yesterday’s downgrades in our trend model are in place. Most of the top coins are trading in or near the trading ranges that developed last week, and volatility remains very low, with trading volumes also being muted across the board.
While the broader trends in the segment are still clearly bearish, and odds still favor a larger negative momentum move in the coming week, the current quiet market conditions are encouraging, at least form a very short-term standpoint. That said, with still only Monero and Ripple being on short-term buy signals in our trend model, traders should wait for much stronger bullish signals before entering new positions.
BTC/USD, 4-Hour Chart Analysis
Bitcoin could provide a strong bullish signal in the coming period, should the triangle consolidation pattern in the most valuable coin get broken on the upside, but for now, BTC is still stuck in the formation. The $6500 price level is in the center of attention yet again, as the coin recovered above without testing the support zone near $6275. Despite its stability, Bitcoin is getting closer and closer to the lower boundary of the triangle pattern, and that also points to a larger move in the coming week.
The neutral short- and long-term signals are intact in our trend model, with strong support levels still ahead at $6750 and $7000, while zones are found near $6000 and $5850.
Altcoins Still Overwhelmingly Bearish
ETH/USD, 4-Hour Chart Analysis
Ethereum is also showing short-term stability, despite its relative weakness in the past few days, and the coin is still on a neutral short-term signal in our trend model, hovering well above the primary support level at $200.
Given the bearish long-term pressures, a move below support is more likely, and traders should still stay away from the coin. Below the primary support zone, further levels are found at $180, $170, and $160, while strong resistance zones are ahead near $260 and between $275 and $280.
XRP/USDT, 4-Hour Chart Analysis
Ripple is still trading in a triangle consolidation pattern that formed after the coins explosive rally. XRP is on short- and long-term buy signals in our trend model after the move, being the only fully bullish major with that, but it needs to stay above the $0.42-$0.46 zone to maintain its break-out.
Several strong resistance levels are ahead for the coin, near $0.54, $0.57, and $0.64, while primary support is found at $0.51. As no other top coin joined Ripple, the rally remains suspicious, and the coming days will be crucial in deciding the fate of the move.
LTC/USD, 4-Hour Chart Analysis
Litecoin and Stellar were also among the stronger coins in recent weeks, but they faield to follow through on the early bullish sings, and now Litecoin is trading below its short-term trendline, while Stellar is just holding above a key support zone. LTC is on a short-term sell, despite today’s rally, and it needs to hold above $56 to avoid a likely test of the $51 level.
Stellar/USDT, 4-Hour Chart Analysis
Stellar tested the lower boundary of the major support /resistance zone near $0.235 yesterday, and although it managed to bounce higher today in early trading, its short-term uptrend is very fragile now. A move below support would likely trigger a selloff towards the $0.19 level, while bulls would need a rally above $0.265 to keep the uptrend alive.
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