Crypto Update: Coins Remain Under Pressure As Litecoin Weighs
The major cryptocurrencies continue to trade under selling pressure following yesterday’s broadly bearish session. While the losses haven’t been significant, so far, this week, the technical deterioration continues with several of the top coins showing clear signs of weakness. BTC’s relative stability is the most positive development of the ongoing post-crash consolidation, but even the most valuable coin is trading in downtrends on all time-frames, and there is no confirmation concerning a meaningful bottom in the segment.
LTC and ETH hit their lowest levels since the initial post-crash bounce today in early trading, while XRP has been trading in a very narrow range only slightly above its prior swing low, still showing technical weakness. As the smaller coins also remain under pressure, the ongoing downtrend seems stable in the market, and while the consolidation period could still continue, odds are heavily in favor of new lows in the coming weeks.
BTC/USD, 4-Hour Chart Analysis
While BTC avoided a major breakdown yesterday it has been struggling to get back above $7,400, and despite its stability, it’s still stuck below its steeply declining short-term trendline. The coin is also trading near its low from October, and the broader downtrend in its market remains intact. As the coin is neutral according to the short-term momentum indicators, the downtrend might resume, so downside risks are high here.
The coin is still on sell signals on both time-frames in our trend model, with support zones found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.
ETH/USD, 4-Hour Chart Analysis
ETH violated the $145 level today in early trading, and while it managed to recover above the key long-term support/resistance, it continues to show relative weakness. The $130 support is still in no danger, but as ETH is clearly below its October low, the key technical breakdown remains validated, and the coin is very likely to hit new lows in the coming weeks.
Our trend model remains on sell signals on both time-frames, with support zones found near $145 and $130, and with resistance zones ahead near $160, between $180 and $185, and near $200.
LTC Eyes Breakdown As XRP Drifts Sideways
XRP/USD, 4-Hour Chart Analysis
While XRP held above yesterday’s low in early trading, it remains well below its steeply declining short-term trendline and the $0.23 level. The coin could still be in for a more sustained counter-trend move, given the steep losses it suffered in recent weeks, but its short-term technical weakness is a major red flag for traders. XRP will likely resume its bear market in the coming weeks, even in the case of another short-covering rally, so traders should remain defensive.
XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.
LTC/USD, 4-Hour Chart Analysis
LTC continues to be the weakest major from a technical perspective, and we still expect it to lead the next leg lower in the ongoing downtrend. The coin has been approaching the key $0.44 level today, and its prior swing low just above $42 could soon be tested. The short-term downtrend line is well above the current price level, meaning that a trend change is highly unlikely.
LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51, $56, and $64.
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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.