Crypto Update: Litecoin Hits Target as Majors Erase Monday’s Losses

Active trading continued in the cryptocurrency segment in the past 24 hours and following Monday’s broad break-down, most of the majors are back in their weekend ranges. The recovery was, yet again, led by Litecoin and the relatively strong coin managed to hit new multi-month highs thanks to the rally. While LTC is now on a short-term buy signal in our trend model, the rest of the top coins remain on sell signals, and the bearish overall outlook hasn’t changed despite the rebound.

The long-term downtrends remain intact, but the quick recovery could reignite the recent counter-trend move, even though the leaders of the move are currently showing a mixed picture. EOS, which has been one of the strongest majors in recent weeks, climbed back above its previous consolidation range, but the crucial ETH continues to be relatively weak, and with BTC and XRP also being among the weaker coins, the breadth of the rally attempt is suspicious.

ETH/USD, 4-Hour Chart Analysis

We continue to pay special attention to Ethereum, since without the second largest coin, a sustained bullish move is unlikely in the segment. ETH is trading well below the key $145 level despite the quick recovery, and because of that, our trend model remains on sell signal son both time-frames.

While the coin is trading above the $130 resistance, a move towards the support zones near $112 and between $95 and $100 is still likely, with the prior bear market low being found near $80, and with resistance zones ahead near $160 and $180.

LTC/USD, 4-Hour Chart Analysis

Liteocin topped the recent swing high thanks to yesterday’s surge, and it triggered a short-term buy, signal, hitting its next target zone near $56 today. While volume patterns are not convincing and the segment-wide trends are creating headwinds for LTC, the short-term trend could still continue, but traders should only consider relatively small positions here.

A sustained bullish move still seems unlikely in Litecoin, barring a broad-based rally in market, with strong resistance above $56 ahead at $64. Primary support is now found near $51, with further zones at $48, $44, and $38.50.

Bitcoin Glued to $3850 Level as Ripple Remains Range-Bound

BTC/USD, 4-Hour Chart Analysis

Bitcoin recovered from Monday’s sell-off together with the broader market, but it failed to recapture the key $3850 level in a sustained fashion. For now, our trend model remains on sell signals on both time-frames, and bulls would need a move above the $4000-$4050, to change the short-term outlook.

While the primary support level near $3600 is in no danger here, BTC is still stuck below the previously dominant rising trendline, and odds continue to favor the resumption of the ongoing bear market. Above the $4000-$4050 zone, strong resistance is still ahead near $4450, while further support is found near $3450, $3250, and the key long-term $3000 level.

XRP/USDT, 4-Hour Chart Analysis

While Ripple managed to join yesterday’s rally, the technical setup in the coin is unchanged, and our trend model remains on sell signals on both time-frames. Without a move out of the broad consolidation pattern, choppy, directionless trading will likely continue, so traders and investors should still stay away from Ripple. Key resistance zones are ahead near $0.32, $0.3550, and $0.3750, while support is found at $0.30, $0.28, and near $0.26.

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.

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.