The cryptocurrency segment has been choppy over the long U.S. weekend, with the major coins continuing their post-crash consolidation, with only a few altcoins changing their technical setups. The most notable outlier is XRP, which managed to form a new short-term uptrend above its consolidation zone, thereby triggering a short-term buy signal in our trend model.
The rest of the top coins are still on sell signals, and while the segment remains stable, downside risks are still high, and barring a broader move higher, traders should remain defensive here. BTC and LTC continue to be relatively weak, and even though ETH has been holding up well in recent days, the smaller altcoins are overwhelmingly negative, and we expect the bear market to continue even in the case of a more durable counter-trend move.
BTC/USD, 4-Hour Chart Analysis
While BTC got briefly above $8,700, it quickly re-entered its short-term trading range, failing to form a short-term uptrend due to its relative weakness. The coin is still likely to continue the downtrend, and with the breakdown level being well above its current price range, even a re-test of the prior broad triangle pattern seems unlikely.
The coin is still on sell signals on both time-frames in our trend model, with support zones found near $8,400, $8,200, $7,600, and $7,800, and with resistance zones now ahead near $9,200 and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH traded within the $180-$185 support/resistance zone after last week’s failed rally attempt, and while it remains within the weekly rising short-term uptrend, the outlook of the coin remains bearish. Bulls would need a rally above $200 to consider entering new positions, as the broader downtrend is clearly intact.
That said, our trend model is still on sell signals on both time-frames, with further support zones found near $160, and $145, and with resistance zones ahead and near $200 and $230.
XRP Continues Counter-Trend Rally As LTC Fails To Impress
XRP/USD, 4-Hour Chart Analysis
After a long period of relative weakness, and a damaging downtrend, XRP is finally showing short-term relative strength. The coin now recovered from the segment-wide crash, and it got close to the key $0.30 support resistance level after forming a higher swing low. The current move is still only qualifies as a counter-trend rally, and while a more durable correction is possible traders should remain cautious here especially given the broad weakness in the market.
XRP is now on a short-term buy signal while being on long-term sell signal in our trend model, with support zones now found near $0.28, $0.26, and with resistance zones ahead near $0.30 and $0.32.
LTC/USD, 4-Hour Chart Analysis
LTC has been trading in a very narrow range near the crucial $56 level in recent days, and the coin remains very weak from a technical perspective. The broad downtrend is still very likely to continue, despite XRP’s rally and ETH’s stability, and the coin could be once again leading the way lower int eh segment in the coming weeks.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones ahead near $64 and $75, and with major support zones found near $56, $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.