Crypto Update: Litecoin Hits New Low as Selling Intensifies
After turning lower yesterday following a failed rally attempt, the major cryptocurrencies are under pressure yet again today. Altcoins are leading the way lower from a technical perspective with especially the recently weak LTC being in a precarious position, already trading below its recent swing low. ETH, XRP, and BTC are also significantly lower, in line with the bearish broader picture, and none of the smaller coins are showing strength, warnings of another broad move to new lows in the coming days.
While most of the top coins are above their respective swing lows, the momentum of today’s decline is warning of an imminent breakdown, and volatility could pick up in the coming days, should the key technical levels fall. On another negative note, ETH, which has been showing early signs during the weekend bounce, gave up most of its gains, and it is now testing the $180-$185 support zone again, threatening with a new low, similarly to Litecoin.
Our trend model remains on sell signals on both time-frames, and downside risks are high even considering the immediate outlook, so traders shouldn’t enter even short-term positions in the strongest coins.
BTC/USD, 4-Hour Chart Analysis
While BTC dipped below $10,000 due to today’s broad sell-off, it remains relatively strong in comparison to the top altcoins, and it’s trading well above the key $9.200 support and its recent swing low. Despite its stability, today, the coin is under severe selling pressure, and the momentum of today’s dip could mean that sub $9,000 prices are coming. The coin cleared the oversold short-term momentum readings last week, so another downswing might already be underway.
Our trend model is still on sell signals on both time-frames, and due to today’s plunge, the coin is now far from a renewed buy signal, and a move below $9,200 would be a huge blow for bulls. Below $9,200, further support zones are found near $8,400 and $8,200, while resistance zones are ahead near $10,000, $11,300, and $13,000.
ETH/USD, 4-Hour Chart Analysis
Ethereum turned lower off the confluence resistance of the $200 price level and the declining short-term trendline, and the coin quickly reached the key $180-$185 zone, losing its relative strength. Following today’s move, another new low is very likely, and that’s bad news for the whole segment, as there is still no sign of a developing bullish leadership, even considering BTC’s stability.
ETH is still on clear sell signals on both time-frames in our trend model, and with the $200 level now being well above the current price level, an upgrade is unlikely in the coming period. Below the initial zone between $180 and $185, further support is found near $160, and $145, while above $200, resistance levels are still ahead near $230 and $265.
Litecoin Hits New Low as Ripple Tests $0.26
XRP/USD, 4-Hour Chart Analysis
Ripple is slightly better off today, compared to its closest peers, but despite its relatively small decline, it remains the weakest major form a long-term technical perspective. XRP is currently testing the $0.26 level, which marks its prior bear market low, and although, its recent swing low is in a safe distance, a move to new lows is very likely in the coming weeks, and traders should continue to avoid entering positions.
The coin is still on sell signals on both time-frames in our trend model, and the risk of a major sell-off is high, especially in light of the segment-wide weakness. Below the $0.26 level, further support is found near $0.23, while above the initial $0.28 level, strong resistance zones are ahead near $0.30, $0.32, and just above $0.33.
LTC/USD, 4-Hour Chart Analysis
LTC has been showing weakness for several days now, and today, it confirmed its weakness yet again, pushing below the $75 level and its recent swing low, as expected. Since all of the majors are under selling pressure, Litecoin looks ready to lead the way lower, and the coin could soon test the next major support zone near $64, with the steep short-term downtrend clearly being intact in its market.
Our trend model is firmly on sell signals on both time frames, and given the coin’s relative weakness, even in the case of a rebound, traders should stay away from LTC, and focus on the relatively stronger coins. Below $64, further support is found near $56 while resistance zones above $75 are ahead in the $85-$90 zone, near $100, and between $110 and $112.
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.