Crypto Update: Ripple Breaks Support As ETH’s Rally Loses Steam
Although the major altcoins had a bearish Sunday, and we saw technical deterioration in the segment, crypto-bulls can still hope for a positive week, as the top coins avoided a major sell-off. Bitcoin remained largely unaffected by the activity among altcoins, as it hovered around the key $10,000 price level, but the most valuable coin’s stability is not enough to change the bearish long-term outlook. The altcoin bear market is still likely to resume, even though the current countertrend move could continue.
ETH remains in focus, as the undoubted leader of the rally attempt, and even though it broke its rising trendline, it’s still in a favorable short-term position. Until ETH holds above the $200 level, another leg higher is still possible, but traders should remain cautious, as downside risks remain high, and the fact that XRP and LTC remain under pressure supports the bearish case.
BTC/USD, 4-Hour Chart Analysis
While BTC dipped below the $10,000 several times today, it remained stable and avoided a significant sell-off in the face of the failed to weakness among altcoins. The technical pattern is still unchanged in the coin’s market, and until a move out of the broad triangle consolidation pattern choppy trading will likely continue.
The coin is still on a long-term sell signal and a short-term buy signal in our trend model, with further support below $10,000 still found near $9.200, $8,400, and $8,200, and with resistance zones ahead near $11,300, and $13,000.
ETH/USD, 4-Hour Chart Analysis
ETH broke below its steeply rising short-term trendline today, but it managed to hold up above $200, leaving the rising trend intact. The overbought short-term momentum readings are all but cleared and ETH could still test the $230 level
Our trend model is on a short-term buy signal and a long-term sell signal, with support below the initial $200 level found between $180 and $185, and with resistance ahead near $230 and $260.
Ripple Triggers Sell Signal As Litecoin Holds On For Dear Life
XRP/USD, 4-Hour Chart Analysis
Ripple confirmed its relative weakness of the past few days, as it plunged below the $0.28 level today, and although the coin stabilized in late trading, it got downgraded in our trend model. Now the coin is once again on sell signals in our trend model, and while the counter-trend move could still resume, traders should continue to avoid XRP and focus on the relatively stronger coins. Further resistance zones are ahead near $0.30, $0.32, and just above $0.33, with support zones found near $0.26 and $0.23.
LTC/USD, 4-Hour Chart Analysis
While Litecoin managed to hold up above its weak rising trendline, outperforming XRP following two closely-correlated sessions, it remains relatively weak and the strong resistance zone $75 still towers ahead for bulls. LTC’s market is still clearly dominated by sellers, and although the rally could still resume, the long-term trend remains bearish.
The coin is still on a long-term sell signal in our trend model, but it remains on a short-term buy signal despite today’s dip. Resistance zones above $75 are ahead between $85 and $90 and near $100, while key support zones are found near $64 and $56.
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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.