Crypto Update: Market Turns Choppy as Bulls Fight for Control

The major cryptocurrencies are having a choppy and neutral weekend, as trading volumes declined following the recent rally and the leaders of the move failed to significantly extend the move after the initial pullback on Friday. The short-term outlook for the segment continues to be mixed, as not many coins joined the rally, but the leaders are holding on to most of their gains and correlations are much lower than in the panicky period preceding the move.

LTC/USD, 4-Hour Chart Analysis

Ethereum, Monero, and Bitcoin are still on short-term buy signals despite the dips, but Bitcoin hasn’t shown strong bullish momentum, and the relative strength of ETH and XMR won’t be enough to turn the long-term bearish trend higher. The coming week will be crucial in deciding the fate of the oversold bounce, with the long-term signals in our trend model still being overwhelmingly negative.

EOS/USD, 4-Hour Chart Analysis

On a negative note, Litecoin couldn’t maintain Friday’s momentum and it failed to trigger a short-term buy signal, staying below the dominant declining trendline. While LTC is still above the $54 support and the August lows, its continued relative weakness, together with other larger cap coins such as Ripple and EOS is still suspicious.

ETH/USD, 4-Hour Chart Analysis

Ethereum failed to test the $235 level despite inching above the recent swing high yesterday, and it spiked as low as the $205 today in early trading, in the low-volume weekend environment. The second largest coin managed to stay above $200, holding on to most of its bounce gains, but it needs to show stronger bullish momentum to avoid a test of the lows near $170 and a resumption of the steep downtrend.

The short-term buy signal is still in place, despite the pullback, but the long-term sell signal is in no danger with strong support levels still ahead at $235 and $260, and trendline resistance above those currently found near $280 and $320.

BTC/USD, 4-Hour Chart Analysis

Bitcoin followed Ethereum lower into the overnight correction, dipping below $6500, but the largest coin recovered quickly and maintained the short-term buy signal. That said, there is still no sign of bullish momentum, and the coin has to stay above $6275 to avoid a likely test of the crucial long-term support zone near $5850. Resistance levels are still ahead at $6750 and $7000, while further weak support is found near $6000.

Ripple Flatlines as Monero Retreats Off Resistance

XRP/USDT, 4-Hour Chart Analysis

Ripple is stuck has been stuck in a very narrow range for days, and the coin is still torn between bullish and bearish short-term forces, while clearly being in a declining long-term trend. A move above $0.30 would still be needed for a short-term buy signal, while from a longer-term perspective a dip below the August lows is still more likely. Further support is found at $0.23, while resistance is ahead at $0.3130 and $0.32.

XMR/USDT, 4-Hour Chart Analysis

Monero turned lower form the zone between $120-$125 together with Ethereum, but the coin is still in a short-term uptrend and on a buy signal in our trend model. That said, given the negative segment-wide trends, traders still shouldn’t enter full positions, as a broad selloff could drag XMR lower as well. XMR faces further strong resistance at $150 while support is found at $108 and $100.

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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.

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.