Crypto Update: Coins Remain Under Pressure But Support Levels Hold Up
The major cryptocurrencies continue to drift lower following yesterday’s sell-off as global financial markets remain upbeat thanks to the subsiding war-related fears and the continued trade optimism. The major coins are all slightly lower compared to yesterday’s closing price but bulls avoided a move below another batch of support zones, leaving the short-term uptrends intact in the segment.
The top coins are all trading above their prior consolidation ranges, giving hope for bulls concerning a more sustained counter-trend move. Our trend model continues to be bullish from a short-term perspective but while the majors have been relatively stable today, downside risks remain high due to the bearish long-term technicals. The top altcoins are especially weak for a long-term perspective, while BTC is trading near its declining trendline, and that could be the basis of a more significant reversal.
BTC/USD, 4-Hour Chart Analysis
BTC didn’t manage to bounce significantly after yesterday’s sharp reversal and it remains stuck below the declining long-term trendline. That said, the coin is clearly above its prior trading range and both the $7,800 and $7,600 support levels. With the failed breakout in mind, a break below support is more likely here, but the short-term trend remains bullish.
BTC is on a short-term buy signal in our trend model, while still being on a long-term sell signal, with support zones now found near $7,800, $7,600, $7,400, and $7,000, and with resistance ahead near $8,200, $8,400, and $8,650.
ETH/USD, 4-Hour Chart Analysis
ETH remains weak from a technical standpoint, threatening with a move back to the post-crash trading range. The coin is trading just above the $135 support level but the $145 level now seems hard to reach for bulls, and ETH could slip back below its November lows soon, which would warn of a possible test of its prior swing low.
Our trend model is on a short-term buy signal while still being on a long-term sell signal, with major support zones found near $135, $130, $120, and $100, and with resistance zones ahead near $145, and $160.
XRP Continues To Bleed As LTC Holds $44
XRP/USD, 4-Hour Chart Analysis
XRP dropped below yesterday’s low, failing to regain its bullish momentum and threatening with yet another failed rally attempt that would confirm the ongoing bear market. The coin is trading below the key $0.21 level, and while it is still above its recent trading range, it could easily re-enter that zone in the coming days. The long-term downtrend remains intact, and another downswing is still likely in the coming weeks.
XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.20, $0.1930, and $0.1750, and with resistance zones ahead near $0.21, $0.23, and $0.2475.
LTC/USD, 4-Hour Chart Analysis
LTC bounced off the key long-term $44 level yesterday, and it continues to trade above it today, despite the segment-wide selling pressure. The coin is still holding up above its November low as well, making a more sustained counter-trend move possible despite the damaging downtrend of the past months.
LTC is now on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51 and $56.
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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.