Crypto Update: Coins Stage Rally Attempt as Litecoin Triggers Buy Signal
The major cryptocurrencies are finally having a positive day following a quiet and bearish period, and although the negative overall picture hasn’t changed, bulls at have something to cheer about. Litecoin managed to move above its primary resistance level at $34.50, building on its recent relative strength, and that triggered a short-term buy signal in our trend model for the first time in almost a month.
LTC/USD, 4-Hour Chart Analysis
The other top coin coins failed to improve their positions enough for an upgrade, with the exception of EOS, but today’s rally attempt was accompanied by an encouraging volume pattern, and the coming days could see further upgrades, should the move continue. Litecoin also recaptured the next major resistance level at $38, with the next targets being ahead near the January swing high just above $41 and near the $44 prove level.
EOS/USD, 4-Hour Chart Analysis
Despite today’s move, the bearish long-term setup still hasn’t changed in the segment, and odds still favor the continuation of the bear market, although there are a few positive signs that could point to a developing bullish leadership.
EOS has been among the most stable coins in recent weeks, and today, the coin built on that relative strength, getting close to the upper boundary of its trading range, and a break-out, similarly to Litecoin is a possibility here. For now, EOS is on a neutral short-term trend signal, but a move above $2.60 could trigger a buy signal.
Top 3 Coins Still Stuck Below Short-Term Resistance Levels
While LTC’s move and the broad rally attempt could be a sign of an impending upswing in the segment, without the participation of the top 3 coins, which dominate the market concerning market cap, we could be facing yet another failed move, similarly to the recent pop higher, which was led by XRP.
BTC/USD, 4-Hour Chart Analysis
Bitcoin got back above the $3400 level today, rallying together with the broader market, but the short-term resistance just above $3450 is still looming, and from a broader perspective today’s move is just a minor pop. With that in mind, traders shouldn’t enter positions here in BTC, with the test of the $3250 support and the key long-term zone near $3000 still being likely.
Our trend model remains on sell signals on both time-frame, and above the primary zone, the $3600 and $3850 levels provide strong resistance, with another strong longer-term zone found between $4000 and $4050.
XRP/USDT, 4-Hour Chart Analysis
Ripple also remains on sell signals in our trend model despite today’s bounce, and the fact that it recaptured the $0.30 level. Bulls would need a move above $0.32 for a short-term trend change, with further strong levels ahead near $0.3550 and $0.3750, and with support levels found near $0.28 and $0.26. For now, traders and investors should still stay away from the relatively weak coin, with a test of the prior market low being likely in the coming weeks.
ETH/USD, 4-Hour Chart Analysis
Ethereum is also relatively weak from a technical perspective, still being stuck below the key short-term $112 level, and with that, our trend model remains on sell signals on both time-frames. A recovery above that would be a positive short-term signal for the whole segment, but given the hostile long-term setups, traders should still only consider short-term positions in the case of a broad rally attempt. Further strong resistance is ahead near the $120 and $130 price levels, while support is still found in the $95-$100 zone and near the $80 level.
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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.