Crypto Update: Selloff Continues Despite Another Pop Higher In Ripple
The cryptocurrency segment continues to trade under clear selling pressure, with most of the majors drifting higher for several days now. Volatility remains low, with light trading activity across the board, and even the most bullish currency, Ripple being in a choppy period despite the periodic burst of activity.
XRP/USDT, 4-Hour Chart Analysis
While the overall picture in the segment is still overwhelmingly bearish, Ripple remains on a short-term buy, and it managed to recover above the key $0.51 level yesterday following a very quiet but bearish weekend. XRP still faces strong resistance near $0.54 and $0.57, and our trend model is only neutral with regards to the long-term time-frame.
Support below $0.51 is found in the key zone between $0.42 and $0.46, and although the broader trends in the segment warn of the continuation of the bear market, traders could still play the short-term trend.
BTC/USD, 4-Hour Chart Analysis
On a negative note for bulls, Bitcoin has been showing weakness in the past days, and now, the most valuable coin is back near the $6275 support level, threatening with a crucial move towards the $6000 level and possibly the key long-term zone near $5850.
The coin is still on a neutral long-term signal, while being on a short-term sell signal, but a move below the long-standing trading range would be a bearish signal for the whole segment. Traders and investors should still not enter new positions here, with strong resistance levels ahead at $6500, $6750, and $7000.
Stellar Relatively Strong Amid Broad Altcoin Decline
ETH/USD, 4-Hour Chart Analysis
Ethereum continued to drift lower towards the $200 support/resistance level that has been dominating trading for months now, as the second largest coin is still stuck in a steep long-term downtrend. The coin turned lower last week before triggering a short-term buy signal, and now, it’s on the verge of a renewed sell signal, given the weakness of the recent days.
Traders and investors should still stay away from ETH, until at least a short-term trend change, with strong resistance zones ahead near $235 and $260, and with further support found at $180, $170, and near $160.
LTC/USD, 4-Hour Chart Analysis
Litecoin continues to be one of the weakest of the majors, and it fell below the $51 support level again following last week’s failed rally attempt. LTC is on sell signals on both time-frames, and a test of the bear market low near $47 seems likely, with a possible drop to the next major support zone near $44 in the coming weeks. Further resistance levels are ahead at $56 and $64 and traders and investors shouldn’t enter positions here.
Stellar/USDT, 4-Hour Chart Analysis
Stellar remained strong from a technical perspective despite drifting lower together with the broader market. While the coin failed to exit its long-standing trading range, the short-term uptrend remains intact, and it is well above the crucial support/resistance zone surrounding the $0.24 price level.
The coin is trying to form a short-term swing low near the $0.2650 support, and despite the bearish segment-wide trends, traders could play the short-term trend here, with resistance zones ahead near $0.2850, $0.30, and between $0.3325 and $0.3475.
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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.