Crypto Update: Ripple Pops Higher as Coins Remain Stable
The major coins rebounded in the past 24 hours after two bearish sessions but the overall picture is little changed. The top coins are all stuck in narrow trading ranges, with even Ripple, which rallied the most being unchanged from a technical perspective. While the low volatility in itself is not a negative sign for the segment, the lack of bullish momentum, and the failed rally attempts of the recent weeks, all confirm the broader downtrend, and for now, there is no evidence of an impending trend change.
LTC/USD, 4-Hour Chart Analysis
With the negative long-term trends in mind, we still advise traders and investors to be cautious with new positions even in the technically stronger coins, as until, at least, a short-term uptrend is established, odds favor a retest of the bear market lows, with new lows in the relatively weaker also being likely. Ethereum and Litecoin are still the most likely to lead the market lower, while bulls could hope for a rally in the still stable Bitcoin to prop up the market in the coming weeks.
Bitcoin pushed back above $6400 but remained shy of the $6500 resistance, the virtually untradeable range in the most valuable coin continues to be dominant. BTC is still in a short-term sell signal in our trend model, and a durable rally above $6500 would be needed for an upgrade.
On the other hand, a more likely move below the primary support zone near $6275 could set up a test of the $6000 and $5850 support levels. Below the latter long-term level, the next major zone is found between $5000 and $5100, while further resistance is still ahead at $6750 and $7000.
Another Brief Spike in Ripple
XRP/USD, 4-Hour Chart Analysis
The pattern of brief spikes without meaningful follow-through continues in the market of Ripple, but the coin continues to hold up near the $0.42-$0.46 zone, despite the apparent selling pressure. The long-term trend signal is still neutral, but we maintain our short-term sell signal due to the lack of bullish momentum.
A move below the $0.42 support would warn of the test of the $0.375 and $0.355 levels, while key resistance levels are ahead near $0.51, $0.54, and $0.57, and traders should still stay away from entering new positions.
ETH/USD, 4-Hour Chart Analysis
Ethereum is still glued to the $200 price level and the technical setup is unchanged despite the lengthy consolidation period. The coin is on sell signals on both time-frames in our trend model, with the steep declining long-term trend being intact.
ETH faces strong resistance at $235 and $260, and the declining long-term trendlines are drawing closer, now being found near the $240 price level. We still expect a test of the bear market low near $170 in the coming weeks, with further support levels found at $180 and $160.
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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.