Crypto Update: Majors Test Key Resistance Levels

The cryptocurrency segment is having a bullish start to the weekend, as the major cryptocurrencies continued pushed higher following the US close yesterday. The top coins all got close to the key short-term resistance levels that we have been monitoring for weeks now, but we are still waiting for a broad break-out that could change the bearish short-term outlook in the segment.

EOS/USD, 4-Hour Chart

Litecoin continued to lead the way higher, hitting a marginal new multi-month high, Bitcoin got back briefly above the $4000, while Ethereum edged closer to the $145 level, but Ripple is still lagging the broader market and its closest peers as well. The previous leaders of the move are still mixed, with EOS lagging the likes of LTC and ETH, and given the long-term selling pressure, the immediate outlook is still doubtful.

Despite the encouraging trends of the past few days, the technical setup is still clearly bearish, especially regarding the long-term time-frame, and our trend model remains on sell signals on both time-frames in most cases, since the key short-term resistance levels are still standing.

ETH/USD, 4-Hour Chart

Ethereum managed to climb above its short-term trading range but it’s still shy of the line-in-the-sand resistance near $145, so we still can’t conclude that the counter-trend move of February is about to resume. The coin remains on sell signals on both time-frames in our trend model, and traders should still not enter new positions here.

Above $145, another very strong resistance zone is ahead near $160, with further supply coming in near $180, while support zones are found near $130, $120, $112, and between $95 and $100.

BTC/USD, 4-Hour Chart Analysis

Bitcoin tested the lower boundary of the key long-term $4000-$4050 support/resistance zone overnight, after leaving the vicinity of the $2850 price level that has been dominating trading for weeks now. The coin turned lower of the key zone, and with that, our trend model remained on sell signals on both time-frames, and traders should remain defensive towards the most valuable coin here.

Above the primary zone, further strong resistance is ahead near $4450, while support is found near $3600, $3450, $3250, and $3000, and bulls would need a move above $4050 for the short-term outlook to turn positive.

Litecoin Hits New Recovery High, as Ripple Remains Stuck in Triangle

LTC/USD, 4-Hour Chart Analysis

Litecoin topped its recent swing high, still leading the way higher, snd the coin is now likely headed for a test of the $64 price level. LTC is still on a short-term buy signal in our trend model, but from a long-term perspective it continues to be in a clear declining trend.

Traders could hold on to their positions here, even in light of the bearish segment-wide weakness, with support zones now found near $56, $51, $48, and $44.

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to be stuck in a narrow short-term range and a broad triangle consolidation pattern that has been dominating trading in coin’s market for several weeks. Despite today’s broad rally, we remain negative on the oulook for XRP, and we still expect the test of the $0.28 and $0.26 levels in the coming weeks.

Above the initial short-term resistance zone near $0.32, furtherlevels are still ahead near $0.3550, and $0.3750, and the coin is still on strong sell signals on both time-frames.

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.

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.