Crypto Update: Coins Stabilize but Key Levels Still in Danger

Altcoins have been under heavy selling pressure in the past two days, with most important coins dropping by around 10% since the start of the week. Bitcoin got hit hard as well after a period of relative strength, but the largest digital currency is still in a much better short-term setup from a technical perspective. BTC’s strength kept the total value of the market near the $275 billion mark, well above the lows hit in June, but most of the majors are dangerously close to said lows after this week’s decline.

The long-term picture is still unchanged as most of the top coins are still inside the broad trading ranges that developed since the June lows, but the failed break-outs two weeks ago and the subsequent segment-wide weakness means that bears are still clearly in control. That is true even concerning the encouraging rally in BTC, as no healthy leadership formed during the move, which would be essential to change the underlying trend.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still on a neutral signal, as it is holding up above the previous swing low near the $7350 support, but the coin failed to trigger a renewed buy signal ever since the correction started last week. While the coin is still stronger than the rest of the market, the $7800-$7650 support zone didn’t even slow down the decline, confirming the strong bearish momentum.

While the resumption of the uptrend is possible, traders should still not enter new positions, and a clear move below $7350 would trigger a sell signal. With the other majors being weak, only a quick recovery above $7800 would trigger a buy signal. Further resistance is ahead at $8400 and $8700, while support below $7350 is found at $7000.

Ethereum Finds Support but $400 Still in Sight

ETH/USD, 4-Hour Chart Analysis

Ethereum is testing the $400-$420 support zone after yesterday’s break-down as we expected, with sellers dominating the market despite today’s weak bounce. The large-scale trading range is still intact despite the current move, and bulls can still hope for a successful test even as the short-term trend is negative.  Primary resistance is now ahead at $450 with further levels at $475, $500, and between $555 and $575, while below $400 key levels of support are at $380 and $360.

XRP/USDT, 4-Hour Chart Analysis

Ripple got saved by the bell despite its relative weakness in recent weeks, as the coin bounced off the key long-term support near $0.42, avoiding a structural breakdown yet again. That said, the short-term sell signal is clearly intact, as the technical setup didn’t change, and now the $0.45 price level is back in the center of attention, with the crucial resistance zone near $0.51 still ahead as a major obstacle for bulls.

XMR/USDT, 4-Hour Chart Analysis

Monero is also attempting a rally off the support zone near the $120 level, but despite a spike to $130, the short-term trend is still clearly negative. The coin broke below a weak advancing trendline yesterday, similarly to Ethereum, and now, a test of the June low just below $110 is very likely, with sell signals being in place on both time-frames according to our trend model.

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.

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.