Crypto Update: Litecoin Leads Another Bounce in Crypto-Land

Following the somewhat bearish start to the week, the major cryptocurrencies turned higher in Asian trading, with Litecoin leading the way higher yet again. The only top coin on a buy signal in our trend model gained as much as 8% compared to its low, and it’s now testing the $56 resistance level again, getting close o last week’s swing high as well.

The top 3 coins are also higher near the US open, but none of them managed to show meaningful bullish momentum, which continues to warrant caution, especially in light of the hostile long-term technicals. With all of them being well below the key short-term resistance levels that we have been monitoring ever since the breakdown two weeks ago, our trend model is on clear sell signals on both time-frames concerning Ripple, Ethereum, and Bitcoin, and the that casts a shadow on the whole segment.

We still can’t rule out another leg higher in the counter-trend rally, but until some of the key coins join Litecoin’s push higher odds continue to favor a negative outcome even regarding the short-term time-frame.

LTC/USD, 4-Hour Chart Analysis

Despite yesterday’s pullback and the segment-wide pressures, Litecoin remained on a short-term buy signal in our trend model, and it launched another rally attempt today in early trading. While the coin is shy of last week’s swing high, the momentum of the move is encouraging and a test of the next major resistance zone near $64 is still in the cards.

That said, traders should still only consider smaller, speculative short-term positions in the relatively strong as the bearish long-term forces are still likely to dominate trading in the coming months, with a possible test of the prior bear market lows. A move above $60 would confirm the short-term swing low, with support levels now found near $56, $51, $48, $44, and $38.50.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to hover around the key $3850 price level after yesterday’s dip, and it remains well below the long-term zone between $4000 and $4050. Thanks to today’s rally attempt last week’s swing low is in no danger here, and although a sustained bullish move remains unlikely, bulls can still hope for another leg higher in the counter-trend move, with a possible push towards the next strong resistance zone near $4450.

For now, our trend model remains on sell signals on both time-frames, with support zones found near $3600, $3450, $3250, and $3000.

Ripple and Ethereum Still Weak but EOS Could be Ready to Pop Higher

ETH/USD, 4-Hour Chart

While Ethereum survived yet another test of the key $130 level overnight, it remains relatively weak compared to its closest peers. The coin is still couldn’t retain its bullish momentum from February and that confirms the negative outlook for the whole segment.

Selling pressure is still apparent in the market of ETH, and without a move above $145, our trend model will remain on sell signals on both time-frames. Above $145, the crucial long-term zone near $160 is also a huge obstacle for bulls, and a move towards the $95-$100 zone is still likely in the coming weeks, with further support found near $112 and in the vicinity of the $120 price level.

 XRP/USDT, 4-Hour Chart Analysis

Although Ripple dipped below the $0.31 level overnight due to the broad drift lower in the segment, it managed to stay above the key $0.30 level while staying within the broad triangle consolidation pattern as well.

Given the clearly bearish long-term picture, XRP remains prone to a larger-scale decline in the coming weeks, but for now, the volatility compression is still ‘on’ and the unlikely bullish outcome can’t be ruled out.  Below the consolidation pattern, the $0.28 and $0.26 levels provide strong support, while key resistance levels are still ahead near $0.32, $0.3550, and $0.3750.

EOS/USD, 4-Hour Chart

After being under pressure for the better part of last week, EOS built up relative strength in the past few days, and it might be ready to join Litecoin and launch a rally attempt in the coming days. For that, the coin has to successfully tackle the short-term resistance zone near $3.80, but without that, it remains on sell signals on both time-frames in our trend model despite its relative stability.

The coin held up well above the $3.50 support, but traders and investors still shouldn’t enter new positions here as a short-term swing low hasn’t been confirmed.

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.