Crypto Update: Support Levels Still Safe as Majors Eye New Upswing
The cryptocurrency segment continues to be in limbo ahead of the long Easter weekend, with top coins consolidation between their recent swing highs, and the key support levels that stopped the selloff on Monday. While we still haven’t seen a decisive move in the market, the top three coins are now all showed promising signs this week, as Ethereum got back above $170 overnight, and it is holding on to most of its gains today.
Although Ripple failed to build upon yesterday’s strength, it continues to trade above the $0.33 level while BTC is hovering north of its weekend, high, not far off from its recovery high near $5400. With the positive short-term developments in mind, there is a better chance of the counter-trend move to continue, even though the broad strength of that bulls would like to see is still not apparent in the segment.
BTC/USD, 4-Hour Chart Analysis
Bitcoin remained very stable throughout the day, drifting slightly higher towards its previous swing high near $5400. The coin is still trading in a weak rising trend, and with the short-term momentum indicators showing neutral readings, a break-out could lead to a a move towards $5850, the structurally important resistance level.
Despite the positive developments and its stability the coin remains on sell signals on both time-frames in our trend model, given the hostile long-term technicals. Initial support is found near $5050, with the reaction low providing support at $4800, while the next long-term zone being at $4450.
XRP/USDT, 4-Hour Chart Analysis
After yesterday’s rally, Ripple pulled back to the $0.33 level and the lack of bullish follow-through is a cautionary sign for traders. The coin failed to recapture the $0.3550 resistance, and with that, our trend model remaied on sell signalsoon both time-frames.
While a broad rally might lift the coin up to $0.3750 given its apparent long-term relative weakness traders should focus on the stronger coins in the case of another leg higher. Crucial support us found near $0 30, with further levels at $0.28 and $0.26, and odds continue to favor the continuation of the bear market.
Ethereum Pops as Litecoin Remains Stable
ETH/USD, 4-Hour Chart
After showing relative weakness for an extended period, Ethereum popped higher overnight, leaving behind its weekend high and edging closer to its previous recovery high just above the $180 resistance. Despite the rally, the coin is still among the weaker majors from a technical standpoint, and for now, our trend model remains on sell signals on both time-frames.
Above $180, the next resistance zone is find near $200, and a broad rally might even carry ETH up to the the $230 zone. That said, from a broader perspective, the coin is still clearly bearish, and although the prior bear market low near $80 is safe, we remain negative regarding the outlook for Ethereum. Below the initial $160 support, further strong levels are found near $145, $130, $112,and in the $95-$100 zone.
LTC/USD, 4-Hour Chart Analysis
Litecoin remains within its short-term volatility-compression pattern, while holding up above the key $72.50-$75 zone. The undoubted leader of the counter-trend move could still resume the rally, despite its current relative weakness, as the rising short-term trend remains intact.
Despite its recent leadership, the coin is still in a bearish long-term trend and even in the case of another lrg higher traders should only consider short-term positions and apply strict risk management rules. Above the crucial $85-$90 resistance zone further supply id ahead just above $100, while below $72.50 support is found near $64 and $56.
Featured image from Shutterstock