Crypto Update: Litecoin Confirms Swing Low As Rally Continues

The cryptocurrency segment continues to show positive short-term signs for bulls, with most of the major coins all adding to yesterday’s gains, solidifying the freshly formed new advancing short-term trends. LTC has been leading the way higher in the past 24 hours, from a technical perspective, and while ETH also got close to hitting a new swing high, the other top coins failed to confirm the breakout yet.

BTC remains well below Wednesday’s high together with XRP, but the fact that most of the smaller coins are at least performing in line with the weaker top digital currencies makes a more sustained rally possible. That’s true even as the majority of the largest coins are still in declining long-term trends, and odds still favor new bear market lows after the counter-trend move runs its course. Our trend model continues to confirm the rising short-term trends, but traders should still use strict risk management rules.

BTC/USD, 4-Hour Chart Analysis

BTC is hovering just above its crucial long-term trendline, but since the most valuable coin failed to follow the relatively stronger altcoins to a higher swing high warrants caution here. The coin still managed to stay above $8,000, despite its short-term weakness, but a long-term trend change is not yet confirmed, and bulls are still facing significant downside risks.

BTC is on a short-term buy signal in our trend model, while still being on a long-term sell signal, with support zones found near $7,800, $7,600, $7,400, and $7,000, and with resistance ahead near $8,200, $8,400, and $8,650.

ETH/USD, 4-Hour Chart Analysis

ETH’s rally got stopped by the key long-term $145 resistance level yet again, but the coin is still stronger than most of its closest peers from a short-term technical perspective. The coming days will be crucial for ETH as it needs to break out above $145 to confirm the short-term trend change and give trader hope for a more sustained counter-trend rally.

Our trend model is on a short-term buy signal while still being on a long-term sell signal, with major support zones found near $135, $130, $120, and $100, and with resistance zones ahead near $145, and $160.

XRP Continues To Leg As LTC Surges To New High

XRP/USD, 4-Hour Chart Analysis

XRP continues to show relative weakness amid the broad rally in the segment, and even though it remains clearly above its prior trading range and it recaptured the $0.21 resistance level, the long-term outlook is still gloomy. The coin failed to get back to its recent spike high, but it still has the chance to confirm a higher swing low, which would confirm the trend change.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.23, and $0.2475.

LTC/USD, 4-Hour Chart Analysis

LTC surged higher above the $50 level for the first time since November after clearing its recent swing high yesterday, and it remains the strongest among the top coins. LTC tested the key long-term $51 level today, and thanks to the confirmed swing low, a rally up to the major zone near $56 is possible, even as the long-term trend remains bearish.

LTC is now on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51 and $56.

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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.