Crypto Update: Sell-Off Continues As Further Support Levels Fall
The cryptocurrency segment had another bearish session as the majors couldn’t recover from yesterday’s sell-off. Several of the top coins violated further support levels, with BTC dipping below $8,000, ETH leaving the vicinity of the key $180 level, and LTC dropping as low as the crucial $51 support level. Today’s move once again confirms the selling pressure in the segment and while volatility remains relatively low, a larger-scale move could already be underway.
While XRP is still holding up relatively well, the other majors are almost all showing weakness, and the smaller coins are all under pressure as well, meaning that another leg lower in the ongoing downtrend is very likely. The coming days could see a series of new lows in the segment and volatility could once again spike higher, so traders should remain defensive here.
BTC/USD, 4-Hour Chart Analysis
BTC confirmed its relative weakness yet again, dropping clearly below the $8,200 support level and the $8,000 level as well today. The coin is now very likely to hit a new low in the coming days and the downtrend could enter its next phase. Bulls would need a quick recovery above $8,400 to keep their short-term hopes alive following last week’s failed rally attempt.
The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,800, and $7,600, and with further resistance zones ahead near $8,650, $9,200, and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH got stuck below the key $180-$185 support/resistance zone and the previously dominant short-term trendline today, after breaking down from the correction pattern yesterday. The coin is still in a slightly better short-term technical shape compared to BTC, but a test of the key $160 level now seems likely as soon as in the coming days, and downside risks remain high.
Our trend model is still on sell signals on both time-frames, with support zones found near $160, and $145, and with further resistance zones ahead near $200 and $230.
XRP Tries To Hold $0.28 As LTC Eyes Key Breakdown
XRP/USD, 4-Hour Chart Analysis
XRP remains the strongest among the top coins from a short-term technical perspective, holding on to its short-term buy signal in our trend model despite today’s broad sell-off in the segment. The coin is trading right at the confluence of the $0.28 support level and its rising trendline, and as we warned in recent days, a bearish continuation is still likely in the coming weeks despite the brief period of relative strength in the coin’s market.
XRP is still on a long-term sell signal in our trend model, with support zones found near $0.28, $0.26, and $0.2475, and with resistance zones still ahead near $0.30 and $0.32.
LTC/USD, 4-Hour Chart Analysis
LTC failed to recover to the vicinity of the key $56 support/resistance level following yesterday’s breakdown, and the coin already tested the next major support level near $51 today. LTC remains very weak from a technical perspective, and new bear market lows are very likely in the coming days, casting a shadow on the whole segment, due to the coin’s leadership in the past few months.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones now ahead near $56, $64, and $75, and with major support zones 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