Crypto Update: Ripple Breaks Support as Market Ticks Lower
Choppy trading continues in the cryptocurrency segment, with most of the major still stuck in narrow trading ranges, with little changes in the technical setup. Ripple is back in the center of attention after a period of lower trading activity in the third largest coin. XRP moved below short-term support, triggering a short-term sell signal in our trend model while staying in a broader consolidation pattern that developed after the coins recent surge.
XRP/USDT, 4-Hour Chart Analysis
Ripple is clearly below the $0.51 support after today’s dip, and now the coin only has support near in key long-term zone near $0.42-$0.46, while several strong resistance levels are towering in the $0.51-$0.57 area. That said, the long-term buy signal remains in place, but given the still hostile segment-wide trends, traders and investors should be cautious with new positions.
The other majors also turned lower today in early trading, but after yesterday’s late-day rally, the major support levels are holding up in the likes of Ethereum, Bitcoin, and Litecoin. That said, some of the smaller altcoins are in weaker positions, and all-in-all the broader negative trends are clearly intact, and sellers are in control of the market.
BTC/USD, 4-Hour Chart Analysis
Bitcoin spiked above $6600 in late trading yesterday, but now it is back near the $6500 support that has been in the center of attention for a month now. The most valuable coin is still trading in a larger-scale triangle pattern, and that is clearly affecting the whole segment, causing choppy conditions and low volumes across the board.
We still expect a strong momentum move in the near future in the coin and the whole segment, and given the bearish broader trend, a negative outcome is more likely. Support levels are still found at $6275, $6000, and near $5850, while resistance is ahead near $6750 and $7000.
Ethereum Little Changed as Altcoin Weakness Persists
ETH/USD, 4-Hour Chart Analysis
Ethereum is still trading in a very narrow range, and although it got close to testing the $235 resistance again, the coin remains on a neutral short-term signal, while being relatively weak from a long-term perspective.
ETH is below the declining short-term trendline, but clearly above the primary support zone near $200. Further support is still found near $180 and $160, while resistance is ahead at $260 and in the $275-$280 zone, with the broader declining trendlines converging near $270 too.
LTC/USD, 4-Hour Chart Analysis
Litecoin also ticked lower today and after trading as high as $59 yesterday, the coin dipped below the $57 level, with the test of the $56 support now being very likely again. The coin is on short-, and long-term sell signals in our trend model, despite the recent period of relative strength, with the declining long-term trend clearly being intact.
Traders and investors shouldn’t enter positions here, with strong support levels found at $51 and near $44, while resistance levels are ahead near $59 and $64.
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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.