Crypto Update: Coins Turn Lower as Ripple-Effect Fades
Yesterday’s rally, which was led by the surge in the price of Ripple quickly ran out of steam, as the majority of the major cryptocurrencies failed to make meaningful technical progress, and the broad bearish pressures remained strong in the segment. XRP spiked briefly above the $0.33 level, but failed to maintain its bullish momentum, and together with the broader market, it’s trading significantly lower today.
Both Bitcoin and Ethereum remain below their respective short-term resistance levels despite the rally attempts, and with the negative long-term technical picture still being unchanged, our trend model remains on sell signals on both time-frames for the majority of the top coins. With that in mind, the test of the bear market lows still seems likely in the coming weeks, and investors should remain defensive towards the segment here.
XRP/USDT, 4-Hour Chart Analysis
Ripple is now trading just above the key $0.30 support after yesterday’s sure, and while the coin is still in its prior trading range, the segment-wide trend and the failed move out of the range all seem to confirm a one-day-wonder rally. XRP has also been relatively weak for weeks before the rally attempt, and we continue to expect a move below the $0.28 level, with a test of the August low near $0.26 still being likely, with the coin facing strong resistance near $0.3550 and $0.3750.
While BTC continues to be relatively stable compared to its peers, and the short-term resistance zone near $3450 is close to the current price level, the fact that Ripple’s rally wasn’t enough to push the coin even over that level is a warning sign for bulls here. With the recent break-down still being intact, a move towards the $3250 and $3000 levels is still likely, barring a move above the $3850 resistance level, and the negative short- and long-term technical setups being dominant.
No Follow-Through Among Altcoins
ETH/USD, 4-Hour Chart Analysis
None of the major altcoins managed to build upon yesterday’s gains, and with ETH still being relatively weak, just trading above its weekly lows, the outlook remains bearish and we would need a quick change in price action to avoid a dip below the key $95-$100 level. Below that, only the bear market low near $80 provides meaningful support for Ethereum, and given the long-term pressures the test of the lows is likely.
Primary resistance is still ahead near $112, but the strong zone near $130 is the line-in-the-sand here, from a technical perspective and below that, the short-term trend is clearly negative in the coin’s market, with further levels ahead near $145 and $160.
Stellar/USDT, 4-Hour Chart Analysis
While relatively stronger coins failed to show bullish follow-through, the weaker digital currencies, such as Stellar, IOTA, and Ethereum Classic continue to weigh on the broader market, confirming the broad-based weakness in the segment. Stellar hit new bear market lows in recent days, and since yesterday’s rally attempt wasn’t enough to cause a meaningful bounce in the coin, new lows are likely ahead.
LTC/USD, 4-Hour Chart Analysis
Litecoin is still trading above the key $30-$30.50 support zone, showing stability despite today’s pullback, but as the coin also failed to threaten the $34.50 resistance level during the rally attempt, the bearish technical setup is unchanged, and traders and investors should still away from LTC. Our trend model remains on sell signals on both time frames, and a dip below $30, with a likely test of the $28 support is likely in the coming days, with further support found at $23 and with resistance ahead near $38.
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.