Crypto Update: Litecoin Breaks Out As Market Remains Upbeat

The cryptocurrency segment had a mixed start to the weekend, following a bullish week, with LTC’s technical breakout providing the most action. The prior leader of the rally, ETH stalled near the $230 level as we expected, while BTC failed to tackle the $10,000 level and XRP got stuck below the key $0.28 level yet again. The advancing short-term trends remain intact in the segment but some of the coins are due for a deeper correction, which would the first major test of the long-term trend shift.

Our trend model remains dominantly bullish on both time-frames, but the weakening of the segment-wide bullish momentum has been clear in the past couple of days. that said, the majors remain above their recently broken long-term trendlines, and while a sharp reversal still can’t be ruled out, the odds of such a scenario are quickly declining.

BTC/USD, 4-Hour Chart Analysis

While BTC hit a marginal new rally high yet again today, it failed to test the key long-term $10,000 level despite LTC’s breakout. The short-term uptrend is clearly intact and the coin still not dangerously overbought, but the current relative weakness could point to a correction. Traders could still hold on to their positions here, as the long-term trend change seems solidified in the coin’s market.

BTC is still on buy signals on both time-frames in our trend model, with support zones found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

While ETH survived an overnight pullback and got very close to the key long-term $230 level, it only managed to score a marginal new high as its bullish momentum is waning. With the short-term momentum indicators being severely overbought, traders shouldn’t enter new positions here even as the uptrend is clearly intact and the coin remains well above its previously dominant declining long-term trendline.

Our trend model now on a neutral short-term signal while still being on a long-term buy signal, with major support zones found near $200, between $180 and $185, and near $160, and with resistance zones ahead near $230 and $260.

XRP Sees Wilds Swings As LTC Zooms Past $75

XRP/USD, 4-Hour Chart Analysis

XRP experienced a surge in volatility yesterday in late trading, pulling back towards the $0.26 level before bouncing back and settling down below the key $0.28 resistance. The pullback hasn’t changed the underlying technical setup in the coin’s market, but it remains weaker than its closest peers from a broader perspective, trading just above its prior long-term trendline.

Our trend model is on a neutral short-term signal while still being on a long-term buy signal, with support zones found near $0.26 and $0.2475 and with resistance zones ahead near $0.28, and $0.30.

LTC/USD, 4-Hour Chart Analysis

LTC finally managed to break out above the key $72.50-$75 support/resistance zone, retaining the leadership of the rally and hitting its highest level since mid-September. The steeply rising short-term uptrend is still intact and even though a deeper correction could be ahead in the coming weeks, for now, technicals remain upbeat for LTC and the current leg higher could still continue.

LTC on buy signals on both time-frame sin our trend model with support zones still found near and $64, $56, $51, and $44, and with resistance zones ahead between $72.50 and $75 and near $85.

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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.

Author:
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.