Crypto Update: Majors Drift Sideways but Litecoin Triggers Buy Signal

The major cryptocurrencies had a choppy session today, similarly to the traditional financial markets, as all eyes were on the Federal Reserve’s meeting. Litecoin has been the most active among the top coins, popping higher following its consolidation period, and triggering a renewed short-term buy signal in our trend model in the process. The other majors are little changed, with Bitcoin, Ethereum, and Ripple all trading in relatively narrow ranges today.

The rather neutral day didn’t bring major moves among the smaller coins either, even though Monero has been showing strength, edging closer to the $100 level. The previous leaders of the broad counter-trend move continue to show weakness, and with still no indication of a broad break-out to new rally highs, the bearish long-term outlook remains clearly intact in the segment, despite the current period of low volatility.

Traders could still enter new short-term positions in the relatively stronger coins, even as the downside risks are increasing from a broader perspective, but strict risk management rules should still be applied, due to the lengthy counter-trend rally.

LTC/USD, 4-Hour Chart Analysis

After completing a textbook consolidation pattern, and triggering a buy signal in our trend model in early trading today, LTC got close to the $140 resistance. Litecoin remains among the leaders of the counter-trend move, and even though most of the previously strong smaller coins are not showing bullish momentum, it could be ready to target the $150 resistance in the coming days.

Traders could still enter new positions here, in the face of the bearish long-term pressures, as the coin now cleared the overbought short-term momentum readings, and it could soon hit new swing high. Initial support is still found near $125 with further levels near $110, $100, and between $85 and $90, while above the key $150 level, further resistance is ahead near $180.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to hover around the key $9200 resistance, and despite today’s brief downward drift, it remains in a clearly rising short-term trend. That said, the our trend model is still on a neutral short-term signal, as the short-term momentum indicators are slightly overbought, and further consolidation is possible here.

Traders could hold on to their positions here but the current setup is still not ideal for opening new trades, especially as we still haven’t seen signs of broad technical strength in the segment. Short-term resistance above $9200 is ahead near $9400, with the next long-term zone near the $10,000 price level, while support is still found near $9000, $8400, and $8200.

Ethereum Drifts Sideways as Ripple Holds $0.42

ETH/USD, 4-Hour Chart Analysis

Despite drifting lower for most of the day, Ethereum is virtually unchanged and the coin is set to close the day in the green. ETH is still stuck below the $275 resistance, and even though its previous swing high is relatively close, the momentum of the move continues to be suspicious. The crucial support level near $230 is safe for now, and that means that another swing higher could still be ahead in the coming week.

Our trend model is on a neutral short-term signal, and despite the prospect of another bullish move, traders shouldn’t enter new positions here, due to the mounting long-term risks. Further support levels are found near $260, $200, and $180, while above $275, targets are ahead near $300 and at the $330 price level.

XRP/USD, 4-Hour Chart Analysis

Ripple continues to show weakness compared to the leaders of the rally, being stuck well below its prior swing high and the $0.46 resistance level. The coin still managed to hold up above $0.42 despite today’s dip, and that keeps the hopes for another swing higher alive especially given the quiet conditions in the segment.

Our trend model is still on sell signals on both time-frames, and even in the case of a rally and a renewed short-term buy signal, trade should continue to focus on the relatively stronger coins. Initial support is still found near $0.42, with further levels near $0.3750, $0.3550, just above $0.33, and near $0.32, while above the key long-term $0.46 resistance, the next strong level is ahead near $0.51.

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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.