Crypto Update: Ripple Surges Again But Remains Weak

The cryptocurrency segment had a mostly bullish Fed-Day, with last week’s star, with Ripple experiencing a strong rebound after the correction of the past few days.  Although most of the majors spent the day in the green, their gains are dwarfed by the more than 20% rise in the price XRP, with the closely correlated Stellar and Cardano adding more than 5% before the late-day pullback.

Bitcoin tested the $6500 level, while Ethereum is trading well above the $200 level after yesterday’s test, but the weaker rally left technical setup unchanged in the case of most of the top coins. Among the smaller altcoins, Monero is still on a buy signal, while Dash and Litecoin retained their neutral signal, with LTC showing relative strength today. The other majors are all on short-, and long-term sell signals, with the long-term outlook still being overwhelmingly bearish in the segment.

XRP/USDT, 4-Hour Chart Analysis

Ripple shot up to the resistance zone near the $0.57 level after bouncing off the key long-term support zone between $0.42 and $0.46 yesterday. The correction cleared the overbought readings that developed after last week’s rally, and today’s move triggered another short-term buy signal, even as the long-term setup is still questionable. Primary support is now found at $0.51, with the crucial long-term zone below that between $0.42 and $0.46, while further resistance is ahead at $0.54 and $0.64.

BTC/USD, 4-Hour Chart Analysis

Bitcoin failed to rise above the $6500 during today’s bounce, and despite the weak move, the coin is still only on a neutral short-term signal and a durable move below the key $6275 level would trigger a short-term sell signal.

With the weak short-term uptrend also being in danger, the test of the $6000 and possibly the $5850 levels seems likely, with strong resistance still ahead at $6750 and $7000. Traders shouldn’t enter new positions here, even as a short-term trend change is not confirmed yet.

Ethereum Sows Weakness Again as Litecoin Attempts Rally

ETH/USD, 4-Hour Chart Analysis

Ethereum failed to hold the key $235 support/resistance level and broke below the rising short-term trendline this week, and today, it has been showing clear relative weakness. While the second largest coin, which was once again briefly overtaken by Ripple today, is still trading above $200, a move towards $180 is likely in the coming period.

For now, our trend model is still on a neutral signal, but ETH is close to triggering a sell signal. Further resistance is ahead at $260 and between $275 and $280, while the bear market low is found near $170 providing additional, weak support.

LTC/USD, 4-Hour Chart Analysis

Litecoin also got close to a short-term sell signal before today’s rally and although today, it showed signs of strength, the coin remains in a weak technical pattern. The short-term trend signal is still neutral, but with the steep long-term downtrend clearly being intact, a move towards the $51 level and the recent low near $47 is likely. Further support is found near $44, while resistance is ahead near the $59 and $64 levels.

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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.

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.