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The counter-current rally in the cryptocurrency segment continues and, after a period of consolidation, Litecoin showed strength today in the early stages of trading. Even Ethereum, the other relatively strong higher currency, is also higher today, while even those like Tron and Cardano have increased, but for now the late majors, such as Ripple and Bitcoin, have not yet adhered to the move, weighing on segment performance.
As repeated several times this week, the odds continue to favor the continuation of the corrective rally, with correlations and volatility still relatively low. That said, from a long-term perspective, the majors are still clearly in bear markets and, as the oversold momentum readings are quickly cleared, a short-term top is likely to form in the next two weeks.
Traders and investors may still remain in short-term positions, with strict risk management rules and a focus on relatively strong currencies, but we would need to see strength in the latecomers to maintain the bullish momentum in the market.
LTC / USD, 4 hour chart analysis
Litecoin eventually abandoned the compression pattern of the volatility of the last days, and the previous leader of the countertrend move came back close to its latest recent swing, observing a break-out and a rally to the $ 38 resistance level.
LTC still has a clear short-term purchase signal in our trend model, despite its long-term bearish pattern, with a further resistance close to $ 40 and $ 44 and with support between $ 30 and $ 30, 50 and close to $ 26. Over $ 38, traders should reduce their positions, with a broader and declining trend line that also provides resistance in the $ 40- $ 41 area.
ETH / USD, 4 hour chart analysis
Ethereum has recovered again above $ 150 and today it has touched the resistance $ 160, but for now there has not been a clear passage above the long-term key level. The coin continues to show relative strength, but the lack of momentum is a bit of a concern for the bulls here. A $ 180 move is still likely in the coming weeks, as the short-term uptrend is intact and our trend model is on a clear buy signal.
That said, given the scale of the countertrend move, the risks that the long-term downtrend trend picks up are increasing, so traders should reduce their exposure and use rigorous risk management strategies, even though the count will likely continue. Below the initial short-term close to $ 145, support areas are still close to $ 130, $ 120 and between $ 95 and $ 100, while a further resistance is close to $ 200.
Bitcoin and Ripple struggling to find momentum
BTC / USD, 4 hour chart analysis
Bitcoin has stopped in the last days, with low trading volumes and volatility that dominated the most precious currency market. The $ 4000- $ 4050 resistance zone and $ 3600 support level continues to be the focus of attention, and short-term momentum indicators are neutral due to the long consolidation phase.
Our trend model continues to be a short-term purchase signal, despite the relative weakness of BTC and the long-term bearish pattern, but traders should continue to focus on the leaders, until we see a bullish momentum in the laggards. . Further resistance is ahead near $ 4450 and between $ 5000 and $ 5050, while support below $ 3600 is close to $ 3250 and $ 3000.
XRP / USDT, 4 hour chart analysis
The ripple continues to trade in the immediate vicinity of the support level of $ 0.3550, being the weakest of the best coins, seriously behind the leaders of the movement. For now, the currency remains on a signal of a neutral trend in the short term, but given the negative long-term outlook and the falling trend, traders should not enter new positions here by excluding a strong upside breakout.
The primary resistance is close to $ 0.3750 with the long-term key resistance still ahead in the $ 0.42- $ 0.46 zone, while support is close to $ 0.32 and $ 0.30.
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Disclaimer: the analyst possesses cryptocurrency. It holds investment positions in the currencies, but does not carry out short-term or day-trading transactions, nor holds short positions on any of the currencies.
