Crypto Update: Quiet Drift Lower Continues as Coins Fail to Make Progress

While the major coins are still holding up above the key short-term levels that have been supporting them for several weeks now, selling pressure continues to be apparent in the segment. Ripple remains in the most peculiar situation among the top coins, and with today’s trendline break, a bearish move got even more likely in the market of the relatively weak coin.

Ethereum has also been showing weakness lately while EOS and Litecoin, the other key leaders of the February move failed to show meaningful technical strength. Should the low-volatility drift of the recent days end with a move to the downside, the risk of a major move will be high, as the long-term technicals are still hostile in the segment, and we saw no signs of broad strength despite the rally attempts of the recent period.

LTC/USD, 4-Hour Chart Analysis

Litecoin failed to challenge its previous swing high despite the quiet segment-wide conditions, and although the coin is still clearly in a rising short-term trend, the lack of bullish momentum is a warning sign for traders.

Our trend model is still on a short-term buy signal, but a downgrade is now very close, and traders should still only hold smaller, speculative positions in the coin, while applying strict risk management rules. Above the previous swing high, the next target zone is ahead near $64, while support levels are still found near $56, $51, $48, and $44.

XRP/USDT, 4-Hour Chart Analysis

Today, Ripple drifted below the weak rising trendline that has been supporting it since the end of January, and that could point to an imminent end to the coin’s lengthy consolidation period. For now, XRP is holding up above the key $0.30 level, but a move below that could trigger a sudden wave of selling, so the coin remains on strong sell signals on both time-frames.

Below the primary support zone near $0.30, further key levels are found near $0.28 and $0.26, while strong resistance levels are ahead near, $0.32, $0.3550, and $0.3750, and traders shouldn’t enter even small speculative positions here.

Bitcoin Still Holding Up Well as Ethereum Approaches $130

BTC/USD, 4-Hour Chart Analysis

Bitcoin failed to move above the key long-term $4000-$4050 support/resistance zone despite its relative stability, and today, it has also been under clear selling pressure, so our trend model is still on clear sell signals on both time-frames. That said, the $3850 support is still holding up, and we can’t rule out the continuation the counter-trend move.

A move above $4050 could trigger a rally towards the $4450 resistance, but odds continue to favor the resumption of the bear market and a test of the $3000 level in the coming months. With that in mind, traders and investors should still not enter positions here, with support zones below $3850 still found at $3600, $3450, and $3250.

ETH/USD, 4-Hour Chart

Ethereum continues to show relative weakness, and despite the rally attempts in the segment, the $145 resistance is still in no danger, and the test of the$130 support seems more likely in the coming days. Given the hostile long-term technicals in ETH’s market, the short-term weakness could point to a strong bearish move, so traders and investors should stay away from entering new positions here, despite the recent stability in the segment.

Our trend model remains on clear sell signals on both time-frames, and above $145 strong resistance is also ahead near $160 and $180, while support is found near $112, between $95 and $100, and at the prior bear market near $80.

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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.