Crypto Update: Sideways Drift in Cryptoland

Not much has changed in the past 24 hours in the cryptocurrency segment, with most of the majors experiencing light trading activity and low volumes following Monday’s spike.

Ripple stayed in the center of attention as the third largest coin has been drifting higher together with Stellar, outperforming the broader market. Despite the gains, XRP also remained clearly in Monday’s range, and the technical setup continues to be shaky even concerning the strongest digital currencies.

While Tether continues to trade with a discount, leading to a slight premium in the price of cryptos on several exchanges, volatility is very low in the markets. Although most of the top coins are slightly lower today, the small moves mean that the total value of the market is still near the $210 billion level, and Ripple is edging closer to Ethereum in market cap yet again.

XRP/USDT, 4-Hour Chart Analysis

Ripple is holding on above the key $0.42-$0.46 zone thanks to its relative strength, but the coin is still on a short-term sell signal in our trend model, as it failed to show real momentum since the surge that was fueled by the dislocation in Tether’s market. XRP still faces strong resistance levels near $0.51, $0.54, and $0.57, and until a move above the spike high, a new short-term uptrend is not confirmed and traders should still not enter new positions.

BTC/USD, 4-Hour Chart Analysis

Bitcoin failed to rally back above the primary resistance level at $6500, even as the coin stabilized well north of the $6275 level and its pre-surge price zone. With that in mind, the coin remained on a short-term sell signal, with a test of the $6000 support still being likely.

While the long-term setup is still neutral, and the long-term support zone near $5850 is fairly safe currently, given the overwhelmingly bearish long-term outlook in the segment, we continue to be defensive towards Bitcoin as well. Further resistance levels are ahead at $6750 near $7000, while below $5850 the next major support zone is found between $5000 and $5100.

Ethereum Holds Just Above $200 as Litecoin and Dash Continue to Lag

ETH/USD, 4-Hour Chart Analysis

With the exception of Ripple and Stellar, altcoins are leaning bearish today, with Ethereum still being the most important laggard of the segment. While ETH is trading above $200, it remains in bearish technical setups on both time-frames, and the recent days confirmed the weakness of the second largest coin again.

Traders and investors shouldn’t enter positions here, as a move towards the $170 bear market low is still likely in the coming period, with strong support level as also found near $180 and $160 and with resistance ahead near $235 and $260.

Dash/USD, 4-Hour Chart Analysis

Dash has been showing weakness throughout this month, and the coin is now likely headed back towards the key $150 level. A move below primary support would warn of a test of the bear market low near $130, while an unlikely move above $170 would signal a trend change. For now, Dash remains on sell signals on both time-frames, and trades should stay away from the coin.

LTC/USD, 4-Hour Chart Analysis

While Litecoin experienced an encouraging bounce in September, it is among the weaker major coins again, and the $51 support level is back in the spotlight. A move below that level is still likely even after the spike above $56 on Monday, since sellers are clearly in control of the currency’s market.

The next major support zone is found near $44, with the bear market low above that at $47, while further resistance is ahead near $59 and $64.

Featured image from Shutterstock

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.

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.