Crypto Update: Ripple Leads Bounce As Consolidation Continues

The major cryptocurrencies experienced a scary late-session sell-off on Thursday, dipping below their recent crash-lows, but thanks to the overbought short-term momentum readings and the overly negative sentiment the breakdown failed. The coins, even the weak BTC and LTC bounced back above their prior lows, but all of them remain below or at key technical levels following the relatively quiet weekend.

The bounce didn’t change the underlying technical setups in the segment, and while some of the top coins are relative strength, most notably XRP and ETH, downside risks remain high. The market could be in for further choppy trading, as investors digest the crash, but we still expect the downtrend to resume, and traders and investors should stay away from entering positions here. Our trend model remains on sell signals on both time-frames, and until a new short-term uptrend forms, the outlook will remain bearish.

BTC/USD, 4-Hour Chart Analysis

BTC continues to be among the weakest majors, from a short-term perspective, trading well below the level of the recent breakdown, even following today’s rally, and the continuation of the downtrend is still very likely. The coin is also below its weekend high, and a rally above the key $9,200 seems unlikely, with the short-term momentum indicators already approaching neutral territory.

The coin is on sell signals on both time-frames in our trend model, with support zones found near $7,600 and $7,800, and with resistance zones now ahead near $8,200, $8,400, $9,200, and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH has been relatively strong throughout the current consolidation phase, and it managed to advance above its weekend high today, breaching the lower boundary of the very strong initial resistance zone between $180 and $185. The current short-term pattern is still clearly bearish, and given the segment-wide weakness remains, we still expect the downtrend to resume.

Our trend model is on sell signals on both time-frames, with support zones now found near $160, and $145, and with resistance above the initial zone ahead near $200 and $230.

Ripple Spikes Higher Again As Litecoin Remains Under Pressure

XRP/USD, 4-Hour Chart Analysis

XRP rallied up to the key $0.26 level, leading today’s advance but despite the strength of the initial spike, it failed to show bullish follow-through similarly to its previous failed rally attempts. The bounce leaves the long-term downtrend intact, even though a longer consolidation period might be head for XRP.

The coin is still on sell signals on both time-frames in our trend model, with support zones found near $0.2475, $0.23, and $0.21, and with resistance zones ahead near $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC climbed up to the key $56 level which also represents its weekend high, but it remains very weak from a technical perspective. The level of the recent breakdown remains well above the current price, and even a stronger bounce would leave the short- and long-term downtrends intact, and we expect new lows following the oversold rally.

The coin is still on sell signals on both time-frames in our trend model, with further resistance zones above $56 ahead near $64 and $75, and with major support zones now found near $51 and $44.

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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.

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.