Crypto Update: Rally Attempts Fails Again as Ripple Weighs

The cryptocurrency segment still resembles a swamp, as prices are stuck in narrow trading ranges, with no major moves in any of the top coins for almost a week now, except the short-term breakdown in Ripple.  It’s no surprise that the technical picture is unchanged, with a slightly mixed short-term outlook and a still overwhelmingly bearish long-term setup in the majority of the coins.

BTC/USD, 4-Hour Chart Analysis

All eyes are still on Bitcoin and its dominant triangle pattern that stopped yesterday’s rally and capped the gains in the whole segment. The formation is now very narrow, causing unusually low volatility in BTC and, to some extent in the rest of the market too. The $6500 support/resistance level is still in focus, and the current setup warrants neutral signals on both time-frames in our trend model.

Given the segment-wide trends, a bearish move out of the pattern remains more likely, but the stability of the market is a bullish sign. With the mixed signals in mind, traders still shouldn’t enter new positions here, with further support levels found at $6500, $6275, $6000, and near $5850, and with resistance ahead near $6750 and $7000.

EOS/USD, 4-Hour Chart Analysis

Among the major altcoins, EOS got the closest to an upgrade in our trend model, as the coin touched the $6 level during yesterday’s rally. For now, the coin got stuck below the key level and although it exited a consolidation pattern the strong resistance ahead coupled by the hostile long-term setup still justifies a short-term sell signal.

Further resistance is ahead near $6.50 and $7.20, while support zones are found near $5.35 and $4.50, and traders and investors still shouldn’t enter positions here.

No Real Progress Among Major Altcoins

XRP/USDT, 4-Hour Chart Analysis

Ripple tested the $50 level yesterday, but the third largest coin couldn’t recapture the resistance and it continues to trade in the dominant short-term triangle consolidation pattern. XRP is still safely above the key long-term zone between $0.42 and $0.46, but despite the long-term buy signal, the short-term outlook is negative.

Strong resistance is still ahead near $0.51, $0.54, $0.57, and $0.64 while the next major support zone is only found near $0.35, with a weaker level above near $0.375, and traders shouldn’t enter new positions before a move out of the triangle pattern.

ETH/USD, 4-Hour Chart Analysis

Ethereum failed to reclaim the $235 level again, despite the recent slightly positive signs, and the coin continues to be among the weakest majors from a broader perspective. That said, the short-term setup is still neutral, with ETH clearly holding up above the primary support zone near the $200 price level.

Traders should wait until the next momentum move before entering new positions, especially given the weak long-term setup in ETH, and below $235, a bearish move is still the most likely scenario. Further support zones are found near $180, $170, and $160, while strong resistance is ahead at $260 and between $275 and $280.

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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.