Crypto Update: Litecoin Hits $64 Resistance Level After Triggering Buy Signal
The cryptocurrency segment continued to lean bullish for the second day in a row, despite the late-session pullback yesterday, with today, Litecoin and Bitcoin Cash leading the rally. On the other hand, the top 3 coins have been quiet today, with Ethereum and Bitcoin both failing to rally, and with Ripple getting stick below resistance, forming a broader consolidation pattern after last week’s explosive move higher.
Some of the other majors also showed early signs of strength, like NEO and IOTA, but the moves were not enough to change their bearish technical setups, and as the previously stronger coins, such as Monero, Dash, and Stellar were weak.
IOT/USD, 4-Hour Chart Analysis
This rotation means that still no healthy leadership developed in the segment, leaving the overall picture bearish, consistent with the dominant negative long-term tendencies.
LTC/USD, 4-Hour Chart Analysis
Litecoin maintained yesterday’s momentum and continued to show signs of relative strength, successfully defending the rising short-term trendline and confirming a higher swing low. With that, the coin triggered a short-term buy signal in our trend model and subsequently rallied up to the key $64 resistance level.
While the declining long-term trend is clearly intact, a move towards the next main resistance zone near $75 would be a bullish sign for the whole segment, with support zones now found near $59, $56, and $51.
BTC/USD, 4-Hour Chart Analysis
The setup in BTC has been unchanged since the dip below $6500, with the coin being on neutral trend signals on both time-frames in our trend model. Today’s weakness is a negative sign for bulls, but until a move below $6275, there is still a chance for a recovery, with the weak rising short-term trend being intact. Support zones below $6275 are found at $6000 and $5850, while resistance is still ahead at $6750 and $7000.
Ripple Flatlined as Ethereum Remains Weak
XRP/USDT, 4-Hour Chart Analysis
Ripple got stuck in a very narrow short-term range today, after failing to overcome the resistance zone near $0.57 yesterday, despite the fact that the key long-term zone between $0.42 and $0.46 held up the coin during the initial corrective move.
The coin remains on a short-term buy signal, even as the long-term trend change is still not confirmed. That said, given the bearish overall picture in the sector, we still don’t advise full positions in XRP here. Primary support is still found at $0.51, while further resistance is ahead at $0.54 and $0.64.
ETH/USD, 4-Hour Chart Analysis
Ethereum has also been trading in a very narrow range today, but compared to Ripple and Bitcoin, it is still clearly weaker, and it is far from the primary resistance zone near $235. While the coin is holding on to the second place with regards to market cap, continued weakness could lead to a more durable “flippening” between the two top coins.
The coin remains on a neutral short-term signal, as long as it holds up above the $200 support level. Further support zones are found near $180 and near the recent low just above $170, while resistance above $235 is ahead near $260.
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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.