Crypto Update: Consolidation Continues As Ethereum Leads Rally Attempt
The past 48 hours were largely bullish in the cryptocurrency segment, but the underlying technical structures still haven’t changed, and no majors confirmed a trend change. That said, both XRP, thanks to its recent spike, and ETH are close to a short-term trend change, but in light of the continued weakness of BTC and most of the smaller coins, the outlook for the segment remains gloomy.
On another negative note, XRP failed to sustainably break out above the key $0.28 level, and as all of the other top coins are below their recent key technical breakdown levels, the downtrend in the segment is intact. Despite the recent small improvements, our trend model is still on sell signals on both time-frames with regards to the largest coins, and until we see signs of broader technical strength, traders should avoid entering positions here.
BTC/USD, 4-Hour Chart Analysis
BTC spiked slightly above the $8,400 level and its short-term trading range yesterday, but a significant breakout hasn’t materialized and the coin remains relatively weak from a technical perspective. While the coin drifted sideways today, holding on to most of yesterday’s gains, the lack of bullish follow-through confirms the ongoing downtrend, and the high downside risks.
The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $8,400, $8,200, $7,600, and $7,800, and with resistance zones now ahead near $9,200 and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH remained among the stronger coins amid the rally attempt in the segment and it continues to trade within the weakly rising trend channel that it recently formed. The coin broke out above the $180-$185 resistance zone, and should it manage to form a swing low above it, it could trigger a short-term buy signal, even in the hostile environment.
That said, our trend model is still on sell signals on both time-frames, with further support zones found near $160, and $145, and with resistance zones ahead and near $200 and $230.
XRP Fails At $0.28 As LTC Remains Under Pressure
XRP/USD, 4-Hour Chart Analysis
While XRP produced an encouraging pop above $0.26, and even showed early signs of organic buying pressure afterwards, the coin failed to build on that brief period of strength. The $0.28 level proved too strong for the coin, and for now, the post-crash correction is still can only be considered as a counter-trend move, even given the coin’s short-term strength.
XRP is on still sell signals on both time-frames in our trend model, with further support zones found near $0.2475, $0.23, and $0.21, and with resistance zones still ahead near $0.28 and $0.30.
LTC/USD, 4-Hour Chart Analysis
LTC moved above the upper boundary of its short-term trading range as well, trading in a similar pattern as BTC, but the move failed to trigger a sustainable breakout. The coin remains relatively weak compared to the leaders of the counter-trend rally, and a dip below $56 could spell trouble for the whole segment, as downside risks remain high.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones ahead near $64 and $75, and with major support zones found near $56, $51, and $44.
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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.