The major cryptocurrencies continued the relatively quiet weekend so far today, with only Ripple’s rally making headlines in the segment. Trading volumes are low, as is volatility, and most of the top coins are stuck in very narrow short-term ranges. The mixed short-term and bearish long-term outlook is intact, but Ripple’s strength led to an upgrade in our long-term trend model and now we have a long-term buy signal in the top 3 coins for the first time since mid-June.
Despite the upgrade, traders and investors should still take the broader trends in the market into account, and remain cautious with new positions, since a durable rally is highly unlikely without a healthy bullish leadership in the segment. Today, the short-term bullish coins haven’t been following Ripple higher, with Monero, Litecoin, and Dash all drifting sideways this weekend.
XRP/USDT, 4-Hour Chart Analysis
Ripple managed to recapture the resistance zone near $0.57 again today in early trading, and the coin I snow likely headed for a test of the $0.64 level, after triggering a long-term buy signal. The coin is also on a short-term buy signal, even as the recent swing high is still well above the current price level. Further support is now found at $0.54, $0.51 with the key long-term zone now in safe distance between $0.46 and $0.46, while resistance is ahead at $0.68 and between $0.725 and $0.75.
BTC/USD, 4-Hour Chart Analysis
Bitcoin failed to test the $6750 level again in the quiet environment, and the range of the price action in the coin narrowed substantially, suggesting a larger momentum move around the beginning of next week. For now, the rising short-term trend is intact but the lack of bullish momentum still warrants neutral short- and long-term signals in our trend model. Support zones are still found near $6275, $6000, $5850, while further resistance is ahead at $7000 and between $7200-$7300.
Ethereum Showing Signs of Life
ETH/USD, 4-Hour Chart Analysis
Ethereum is still testing the $235 resistance level, despite spiking briefly above it today in early trading, and the coin is finally showing early sings of short-term relative strength. That said, from a long-term perspective, the coin is still very weak, with the steeply declining trendlines clearly being intact. Traders and investors still shouldn’t enter new positions here, although a short-term buy signal could be triggered soon. Support levels are found near $200, $180, $170, and $160, while further resistance is ahead at $260 and between $275 and $280.
EOS/USD, 4-Hour Chart Analysis
EOS is still on short- and long-term sell signals despite its current stability, but should the coin move above the short-term triangle pattern, a test of the $6.50 resistance would be likely. A bullish shift would be a positive sign for the whole segment, but for a broader trend change, the majors should be able to maintain momentum in a concerted fashion. Support levels are now found at $5.35 and near $4.50, while further resistance is ahead near $7.30.
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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.