As we have warned in recent days, the counter-current rally in the cryptocurrency segment is failing, and the declining momentum along with the still overwhelming long-term pressures have led to a sharp decline today, which has significantly dragged all the lower majors. The move, which caused trendline breaks in most of the best currencies, was accompanied by a surge in trading volumes, while correlations between the majors also increased the level, confirming the validity of the breakdowns.
After the recent downgrades of our trend model, the short-term outlook has further deteriorated today, and traders and investors should remain defensive here, with all the majors still on sale for the long-term time frame. A bear market minimum test still seems likely in the coming months, although a larger full scale process may already have started in the segment.
ETH / USD, 4 hour chart analysis
The most important leader of the rally, Ethereum has clearly exceeded its dominant short-term trend line and the support level of $ 145. The ETH has quickly returned to the first major support zone near the $ price level. 130, and now the currency is selling signals on both times in our trend model.
Traders should stay away from entering new positions, until we see new signs of strength, as downside risks remain high in light of long-term configuration. Additional support areas are still close to $ 120 and between $ 95 and $ 100, while the resistance is ahead of $ 160 and close to $ 180.
BTC / USD, 4 hour chart analysis
Bitcoin broke below the key resistance zone $ 4000- $ 4050, guaranteeing a neutral downgrade in our trend model, but for now the currency remains clearly above the $ 3600 support. Given the technical weakness of the currency and the # 39; broad segment breakdown, even short-term traders should avoid placing new positions here, while the long-term configuration remains clearly bearish.
The long term oversold momentum readings are now cleared, thanks to the counter-trend rally and we need to see strong technical strength tests before returning to the market. The additional resistance is now close to $ 3850, and $ 4450 while support below the $ 3600 level is close to $ 3250 and $ 3000.
Hammond Altcoins Amid Broad Sell-Off
LTC / USD, 4 hour chart analysis
Litecoin is trading near the support level of $ 34.50 after the sell-off and with the dominant rising trend line just below the current price level, the currency outlook remains shaky. While Litecoin was making its way up the countertrend, it remains in a steep long-term downtrend and traders and investors should avoid entering new positions here. Additional support is between $ 30 and $ 30.50 and close to $ 26, with strong resistance zones close to $ 38 and $ 44.
XRP / USDT, 4 hour chart analysis
The technical position of Ripple has further deteriorated and the currency is now observing the $ 0.32 level test after breaking the $ 0.3550 support threshold, triggering a short-term sales signal. The long-term picture is also bearish and traders and investors should not enter relatively weak positions in the XRP. The resistance is higher at $ 0.3550 near $ 0.3750 and in the long-term key zone between $ 0.42 and $ 0.46 with further support found near $ 0.30 and $ 0.26.
EOS / USD, analysis of the 4-hour chart
EOS followed the broader market below and broke out from the consolidated consolidation scheme that has been dominated by the negotiations in recent weeks. The currency has triggered a short-term selling signal with the move and we expect the broader downtrend to continue, with support levels now close to $ 2.35 and slightly above $ 2 and with resistance close to $ 2.50, $ 2.655 and $ 3.
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Disclaimer: the analyst possesses cryptocurrency. It holds investment positions in currencies, but does not carry out short-term or daily trading activities, nor holds short positions on any of the currencies.