Crypto Update: Rally Stalls but Coins Hold Gains

Trading volumes declined substantially today in the cryptocurrency segment following several days of very active trading, with still Litecoin being at the center of attention. Most of the majors are little changed compared to the price levels seen during the weekend, despite the steep Monday decline and the subsequent sharp recovery.

The total value of the market is still hovering just above $130 billion, and although the highs reached during the recent counter-trend move are out of reach, with regards to the majority of the coins, the bear market lows are safe, for now. While the short-term breakdown patterns didn’t change the bearish long-term outlook, with the previous leaders of the rally showing stability, we still can’t rule out another leg higher in the counter-trend move.

That said, given the lack of bullish momentum in the markets of the top 3 coins, a sustained move to the upside is unlikely, and our trend model remains on sell signals on both time-frames for most of the majors.

ETH/USD, 4-Hour Chart Analysis

ETH traded in a relatively narrow range on the past 24 hours despite the brief spikes in both directions, and the coin continues to trade in the no-mans-land between the $130 and $145 support/resistance levels. With the bearish long-term picture in mind, odds still favor a negative outcome after the consolidation, so our trend model remains firmly on sell signals on both time-frames.

Until we don’t see fresh signs of technical strength, traders and investors should stay away from the second largest coin, with further strong resistance levels ahead at $180 and $160, and with key support zones found near $112m between $95 and $100 and near $80.

LTC/USD, 4-Hour Chart Analysis

While the bullish momentum of Liteocin weakened today, and the coin might already be forming a short-term swing high, it continues to trade above its previous high, retaining the short-term buy signal in our trend model.

Despite the signal, caution is still warranted even regarding short-term positions here as the bearish segment-wide trends pose a huge downside risk even for the relatively stronger coins. Strong resistance above $56 is still ahead at $64, with primary support found near $51, and with further zones at $48, $44, and $38.50.

Bitcoin and Ripple in Standstill After Active Period

BTC/USD, 4-Hour Chart Analysis

From a broader perspective, Bitcoin, together with the overwhelming majority of the segment continues to trade in a bearish consolidation pattern that developed following the last damaging downswing of 2018. BTC hasn’t been able to recapture the $3850 level in a sustained fashion, so it remains well below the key $4000-$4050 zone.

Our trend model is on sell signals on both time-frames, and we still expect a move towards the $3000 level in the coming months, even if the short-term rally resumes. Above the crucial long-term zone, strong resistance is also ahead near $4450, while further support is found near $3600, $3450, and $3250.

XRP/USDT, 4-Hour Chart Analysis

Ripple is likely nearing the end of its broad consolidation, and the triangle pattern continues to favor a bearish large-scale move. The relatively weak coin is holding up well above the primary support zone found near $0.30, but with a mountain of resistance ahead for bulls, it would take a strong and broad-based rally in the segment to change the trend in XRP.

With that in mind, traders and investors should stay away from the coin, until at least, a move above $0.34, with key resistance zones ahead near $0.32, $0.3550, and $0.3750, and with further found near $0.28 and $0.26.

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.

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.