Crypto Update: Coins Settle Down in Light Year-End Trading

The technical setup has been little changed in the past 48 hours in the cryptocurrency segment, with the major coins trading between key support and resistance levels, without a clear direction. The top coins are all stuck below their recent swing highs, despite the rally attempt on Friday, but on a positive note, volatility is low, and last week’s lows are in no danger, for now.

While tomorrow we expect quiet trading to continue, the rest of the week will be crucial for the segment, in deciding the fate of the counter-trend rally. Given the extent of the November plunge, we expect the oversold move to continue, even as the long-term picture remains clearly bearish and from a broader perspective, at least a retest of the bear market lows is still very likely. With that in mind, although short-term traders could continue to play the long side here, strict risk management rules should still be used.

IOTA/USD, 4-Hour Chart Analysis

The leaders of the counter-move have been showing mixed signs since the Friday rally attempt, with Ethereum and IOTA holding up relatively well, even as Litecoin gave back most of its gains. For now, the overall picture still points to the continuation of the rally, but we will continue to monitor the leaders for further signs of weakness.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to show weakness compared to the short-term leaders, but it remains in safe distance of the $3600 support level, so the short-term buy signal is in place in our trend model. The coin still faces strong resistance in the $4000-$4050 zone, with targets above that ahead at $4450 and between $5000 and $5050.

Short-term traders could still enter positions here, even as the long-term downtrend is clearly intact, but given BTC’s relative weakness, the leaders of the move are more attractive for short-term gains. Support below $3600 is found near $3250, with the next major zone begin near the $3000 price level.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still one of the strongest majors from a short-term perspective, and the coin got close to taking over Ripple as the second largest coin yet again. For now, ETH is holding up above the $130 level, with all eyes on the $160 resistance, but two strong declining trendlines are also conversing near the current price level, which could lead to further choppy trading. Further support zones found near $120 and between $95 and $100, while another strong resistance level is ahead at $180

Ripple Remains Weak as Litecoin Fails to Retain Momentum

LTC/USD, 4-Hour Chart Analysis

While Litecoin showed strength during the Friday rally attempt, since then it has been drifting lower and now LTC is trading just above the $30 level after giving back a large chunk of the gains. Despite the weakness, the coin remains in a favorable short-term technical position, with the short-term sell signal in our trend model being in place.

Litecoin faces strong resistance near the $34.50 level, with another strong zone at $38 and with the recent swing high being found near $36, while support below $30 is found near $26, and traders could still enter new positions here.

XRP/USDT, 4-Hour Chart Analysis

Ripple is hovering around the $0.3550 support/resistance level after showing relative weakness compared to the leaders since the Friday move. The coin continues to be on short-term buy signal in our trend model, but the long-term sell signal is in no danger. Key long-term resistance is still ahead in the $0.42-$0.46 zone, with further levels at $0.3750 and $0.40, while further support is found near $0.32 and $0.30.

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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.

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.