Crypto Update: Ripple Surges on Swift-R3 Partnership, but Bearish Forces Still Strong

The major cryptocurrencies all gained ground today, with the help of Ripple’s strong, news-induced rally, which propelled the currency all the way to the, recently significant, $0.32 price level. While XRP managed to recapture the $0.30 resistance level, its peers failed to make meaningful technical progress, and the bearish overall picture remains dominant in the segment.

XRP/USDT, 4-Hour Chart Analysis

While we can’t rule out a bullish follow-through rally, risks are still skewed to the downside and until a broader rally, traders still shouldn’t enter positions here. Even Ripple, which jumped by more than 10% today, is below the upper boundary of its recent trading range and our trend model also remained on sell singles on both time-frames in the case the leading coin.

The next days will be crucial for the fate of the bounce in XRP, but for now, traders should remain aware of the still negative long-term setup. The coin faces strong resistance near $0.3550, (with weaker short-term zones near $0.3330 and $0.345), near $0.3750, with the key long-term zone between $0.42 and $0.46 still being way out of reach. Odds continue to favor a move below the $0.28 level in the coming weeks, with a likely test of the $0.26 level, despite today’s rally.

BTC/USD, 4-Hour Chart Analysis

While BTC followed Ripple higher, it failed to rally above the short-term resistance zone near $3450 and the recent break-down remains intact. A move towards the $3250 and $3000 levels still seems likely, and the most valuable coin remains coin remains on sell signals on both time-frames in our trend model as well.

Bulls would still need a rally above the $3850 level to change the short-term technical setup, and despite the coin’s recent relative stability, bear market rules still apply and traders and investors should stay away from entering positions here with further strong resistance ahead between $4000 and $4050.

Ethereum Fails to Test Short-Term Resistance Level as Altcoins Remain Weak

ETH/USD, 4-Hour Chart Analysis

While ETH is still trading clearly above the key $95-$100 zone, it failed to reach the price level of the recent break-down at $112, and the weak rally confirms the selling pressure that has been apparent in the coin’s market. With the short- and long-term downtrends clearly being intact, the current bounce will likely fail, and a move below the long-term zone into double digits could follow as soon as the second half of the week.

Ethereum should at least recapture the $120 level to change the short-term trend and for now, our trend model is on clear sell signals on both time-frames with further resistance zones ahead near $130, $145, and $160.

EOS/USD, 4-Hour Chart Analysis

On a positive note, EOS is showing early signs of relative strength, with the coin re-entering its prior short-term trading range thanks to Ripple-rally, but that strength is not enough to warrant an upgrade in our trend model, with the long-term negative pressures still clearly being dominant here.

That said, a rally above $2.55 would be a great sign for bulls, but given the market-wide trends, traders shouldn’t enter positions here, with a move towards $2 still being likely.

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to hold above the $30-$30.50 support zone, but it failed to stage a meaningful rally today, and a move below that zone is likely in the coming days, given the bearish long-term trend. The $34.50 price level is still the line-in-the-sand here, and below that, traders should avoid LTC.

Our trend model remains on sell signals on both time frames, with another strong resistance zone ahead near $38, while below the primary zone, further support is found near $26, and near the bear market low at $23.

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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.