Crypto Update: Coins Settle Down as Litecoin Continues to Shine

After avoiding a key breakdown on Wednesday, the major cryptocurrencies are still trading inside the short-term consolidation patterns that developed following Sunday’s segment-wide plunge. While the top 3 coins still failed to make meaningful technical progress, they remained safely above the weekend lows, and today, they are all slightly in the green.

On a positive note, the leaders of the recent counter-trend rally continue to show stability and that keeps bulls’ hopes alive that the advance could resume. Despite the encouraging signs, the broader picture remains clearly bearish, and until we see stronger indications of broad technical strength, traders and investors shouldn’t enter new positions even in the relatively stronger coins.

LTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active and best-performing major today, and it built upon its recent relative strength, recovering above the short-term $48 resistance level. While the coin is still below the rising trendline that it broke on Sunday, it is close to confirming a short-term swing low which would point to another test of last week’s swing high near $52.

From a long-term perspective, odds continue to favor the test of bear market lows, but the short-term uptrend could still continue, with the next major target zone being ahead near $56, and with support found at $44, $38, and $34.50.

BTC/USD, 4-Hour Chart Analysis

While Bitcoin gained some ground today, drifting higher together with the broader market, it is still stuck inside the short-term consolidation range and below the key $3850 level. BTC is now also below the previously dominant short-term uptrend line, but for now, the weekend low is in safe distance.

With that in mind, the counter-trend move might still resume, but our trend model remains on sell signals on both time-frames, as there is still no evidence of a new bull market in the most valuable coin. Above $3850, strong resistance is also ahead in the $4000-$4050 zone and near $4450, while support is still found at $3600, $3250, and $3000.

Ethereum Fails to Join Litecoin’s Rally as Ripple Tests $0.32

ETH/USD, 4-Hour Chart Analysis

While Ethereum is also holding up above the weekend low and the key $130 support level, despite being relatively weak in recent days, it couldn’t get close to the $145 resistance today. The low-volatility drift left our trend model on sell signals on both time-frames, and below the primary resistance level, sellers remain in control of the market.

Without Ethereum or Bitcoin joining the rally attempt, the long-term bearish forces will likely outweigh the bullish short-term momentum of the smaller coins, such as Litecoin so traders should pay special attention to the weakness in the top coins.  Below $130 key support is still found at $112 and $95-$100 zone, while above $145, strong resistance is ahead near $160.

XRP/USDT, 4-Hour Chart Analysis

Ripple is finally showing signs of ‘organic’ short-term strength, outside of the news-induced spikes which have been immediately sold in recent months, but for now, XRP is still facing stiff resistance zones just above the current price level.

Our trend model is on strong sell signals on both time-frames despite today’s really and below the recent swing highs just north of $0.33, traders should stay away from the coin even regarding short-term positions. Key support levels are still found at $0.30, $0.28, and $0.26, while strong resistance zones are ahead near $0.3550, and $0.3750.

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.