Crypto Update: Ripple Fights For $0.30 Support as Market Remains Frozen
Light trading continued in the major cryptocurrencies, with the top coins trading in very narrow ranges across the board. While the low-volatility, low-volume environment is usually bullish, given the recent failed rally attempts and the overwhelmingly negative long-term picture, bearish forces continue to clearly dominate the segment.
In light of the downside risks traders and investors should still stay away from entering positions here, as although a broader bottoming process might already be underway, there will be plenty of time to enter the market in more favorable technical setups. The short- and long-term downtrends are still intact in the case of the top coins, and our trend model remains on sell signals on both time-frames as well, with the test of the prior bear market lows still being likely in the coming weeks.
BTC/USD, 4-Hour Chart Analysis
Bitcoin has been trading in a very narrow price-range throughout the day, in safe distance of both upper and lower boundaries of its already narrow trading range. The volatility-compression in the coin’s market led to a collapse in trading activity, and despite the quiet market conditions, technicals continue to support the continuation of the bear market.
With that in mind, traders should still stay away from the coin, with strong resistance zones above the primary level ahead near $3850 and between $4000 and $4050, and with support zones still found near $3250 and $3000.
XRP/USDT, 4-Hour Chart Analysis
While Ripple’s market has been quiet, similarly to its peers’, the coin, which still holds the second place on the capitalization list thanks to Ethereum’s weakness, is apparently under strong selling pressure. All short-term really attempts have been quickly sold in XRP, and although the coins is still clinging to the $0.30 support, the next major move will likely be another test of the $0.28 low, with a possible move towards the August low near $0.26. The coin remains on sell signals on both time-frames in our trend model, with strong resistance still ahead near $0.32, $0.3550, and $0.3750
Litecoin Flirts With $34 Level as Ethereum Continues to Struggle
LTC/USD, 4-Hour Chart Analysis
Litecoin continues to hold on to its recent gains, still being relatively strong compared to its closest peers, even though it is also stuck below its primary resistance level, found near $34.50. The lack of bullish momentum is still suspicious, and with the bearish market-wide pressures in mind, traders should stay away even from LTC, and our trend model remains on sell signals on both time-frames. Key support is still found between $30 and $30.50, with further zones near $26 and $23, while resistance above $34.50 is ahead near $38.
ETH/USD, 4-Hour Chart Analysis
While Ethereum is still trading in safe distance of the key long-term support zone found between $95 and $100, the market of the third largest coin is clearly controlled by sellers, and ETH failed to make any progress in the last 24 hours.
The coin remains very weak from a technical standpoint, and a move towards the $80 level and the prior bear market low remains likely in the coming weeks. Primary resistance is found near $112, with further levels above that near $120 and $130, and as our trend model remains on sell signals on both time-frames, traders and investors shouldn’t enter positions here.
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.