After last week's rally, the cryptography segment entered a short-term pullback, but for now the move has been interrupted and the first coins may already form minimums. The main cryptocurrencies have eliminated the momentum overbought in the short term, but have remained above the key support levels we have monitored. Although further consolidation in the illiquid holiday environment is possible, the short-term outlook remains positive.
While the most overbought coins have been downgraded to neutral in our trend model before Christmas, traders may already be in positions, anticipating another higher leg in the counter-current rally. Despite the current higher move, the long-term picture is clearly bearish in the segment, and since long-term oversold readings have already been liquidated, traders should still only deal with new positions as short-term transactions.
BTC / USD, 4 hour chart analysis
Bitcoin dropped below $ 3700 during the correction, but remained above the key support level of $ 3600 and is still a short-term purchase signal in our trend model. The volatility and the trading activity remained low after the strong withdrawal and the pullback could already be finished.
All eyes now have a resistance of $ 4000 to $ 4050, and a new maximum of swing could trigger a move up to the resistance of $ 4450. Another strong zone is leading between $ 5000 and $ 5050, while a further support is close to $ 3250 and $ 3000, and traders could still play the counter-current rally here.
ETH / USD, 4 hour chart analysis
Ethereum almost touched the $ 160 key resistance level before diving below the $ 130 level during the pullback. The currency remained above the $ 120 level and quite distinct from the strong $ 95- $ 100 zone, and the short-term uptrend trend is intact.
The trend model is now back on a short-term purchase signal, as the currency has canceled readings of overbought, and a test of the previous swing is likely next week, although the long-term picture remains clear bearish.
Mixed Altcoin as a correlation. Tick lower
Dash / USD, 4 hour chart analysis
Although most of the majors are operating on similar models, the very strong correlations we have seen in the last few months have been somewhat reduced, which supports the continuation of the counter-current rally. Most majors broke the rigid short-term uptrend lines, entering consolidation patterns, and coins were suspended close to key support levels, with the bulls watching the swing's previous highs.
LTC / USD, 4 hour chart analysis
Litecoin has been one of the leaders of the rally so far, and after exceeding the target of $ 34.50, the currency has become significantly lower, already testing the support / resistance zone from $ 30- $ 30.50. Short-term momentum indicators are now neutral, and the currency may already be ready to return to the $ 34.50 level, and a rally of up to $ 38 is possible in the coming weeks. The currency is once again a signal of short-term purchase in our trend model, even if the long-term downtrend is clearly intact.
XRP / USDT, 4 hour chart analysis
Ripple failed to stay in the long-term key $ 0.42 – $ 0.46 support / resistance zone despite the strong rally, and the currency fell below the support of $ 0.3750 even after shooting lower along with the wider market.
While in the short term, the XRP shows relative weakness, it is back on a short-term purchase signal in our trend model, although the long-term sales signal is in place. The XRP must remain above the primary support level close to $ 0.3550, with additional support levels at $ 0.30 and $ 0.32 and a weaker resistance level at $ 0.40.
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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.