Crypto Update: Ripple Pops, Bitcoin Consolidates as Market Remains Quiet

Despite the twists and turns of the past week in the cryptocurrency segment, the major coins are still stuck in short-term consolidation patterns and the jury is still out on the fate of the counter-trend move that started in February. The general trends, Bitcoin’s stability and the weakness in altcoins remain in place, even though today, Ripple showed relative strength for the first time in weeks.

Most of the majors had a very quiet day, with BTC consolidation below its recent swing high, and with most of the top altcoins hovering near their weekend highs. Due to the sideways drift in the segment, even the short-term technicals are virtually unchanged, although thanks to its stability, Bitcoin is getting ever closer to a short-term buy signal in our trend model.

That said, given the hostile long-term setups, we continue to advise caution to traders, as even though the counter-trend move might still resume, bear market rules continue to apply and from a broader perspective downside risks are still very high. With the previous leaders of the move still being mixed, there is not enough evidence to support the bullish short-term case.

BTC/USD, 4-Hour Chart Analysis

While the previous high near $5400 is still out of reach for Bitcoin, and it’s only a tad above its weekend high, it remains strong compared to its closest peers. The coin is well clear of the weak rising trend line that provided support during the Monday selloff, and although alone, BTC won’t be enough to kick-start another move higher, should Ripple sustain its bounce, the counter-trend move might still resume.

Despite the coin’s encouraging stability, our trend model remains on sell signals on both timeframes, and traders should still stay away from entering new positions here. Initial support is found near $5050, with the reaction low providing support at $4800, and with further levels below that found near $4450, $4200, and in the $4000-$4050 zone.

XRP/USDT, 4-Hour Chart Analysis

Ripple is finally showing signs of life after finding support near the $0.32 level, and although it is still severely lagging its peers from a broader perspective, today’s bounce increases the odds of another leg higher in the segment-wide rally. Strong resistance is ahead near $0.3550 and below that, traders shouldn’t enter new positions, given the still hostile long-term technicals.

Our trend model is also on sell signals on both time-frames, and while the crucial $0.30 level is in a safe distance, odds continue to favor a move below that, as the bear market is still likely to resume as soon as the counter-trend runs its course, with further support levels found near $0.28 and $0.26.

Ethereum and Litecoin in Standstill

ETH/USD, 4-Hour Chart

Ethereum has been stuck in a very narrow range all day long, trading very close to its weekend high. The coin is well above the $160 level, for now, and despite its recent relative weakness, the immediate outlook is rather neutral thanks to the low volatility and the lack of bearish follow-through following the Monday dip.

While the $160 level is in no immediate danger and today’s trends are somewhat bullish in the segment ETH is still far from its recovery high, and it remains in a precarious long-term technical setup, so traders should remain defensive here. Below the initial $160 support, further strong levels are found near $145 and $130, while above the $180 level, the next major resistance zone is ahead near $200.

LTC/USD, 4-Hour Chart Analysis

Litecoin followed the lead of BTC and ETH today, trading in a very narrow range within its broader consolidation pattern, and although it’s below its weekend high, the bullish short-term trend remains intact. That said, below the key $85-$90 resistance zone, traders shouldn’t enter the coin’s market, as the bearish long-term trend continues to be dominant.

Initial support is still found in the zone between $72.50 and $75, and above that the hope for another move higher is alive. Below the initial zone, further support is found near $64 and $56, while above $90 the next major resistance zone is ahead just above the $100 price level.

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.