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The cryptocurrency segment is having another bearish session following the encouraging strength of the first week. The rally attempt that was mainly conducted by Ripple, Bitcoin Cash, EOS and Stellar vanished, and most majors drifted lower in the last two days. While the bullish move has been the largest in recent weeks, it has not yet managed to gather support and move the market trend.
In addition, long-term bearish setups have remained intact, with only Bitcoin and Ripple found on long-term neutral signals in our trend model. With this in mind, even in the case of another rally attempt, traders should remain cautious with the new positions.
That said, if the lateral price action of the last few months should continue and end with a large uptrend move, a new cyclical progress would provide good buying opportunities. Until this improvement, we remain defensive towards the segment, although volatility continues to be encouragingly low.
XRP / USDT, 4 hour chart analysis
While Ripple has returned a large chunk of its recent gains, it is still trading above its previous range, and is now the only currency on a short-term purchase signal in our trend model. On the negative side, XRP is again below the support / resistance level of $ 0.51 and the risk of a failed breakout is growing, especially given the broader market trends.
The key long-term zone between $ 0.42 – $ 0.46 could be back in play next week, while a recovery above $ 0.54 would be a very bullish signal for the third largest currency. Additional support levels are found at $ 0.375 and $ 0.355, while resistance is close to $ 0.57 and $ 0.64.
BTC / USD, 4 hour chart analysis
The bitcoin is moving back to the main support zone near $ 6275, after the rally has failed above the $ 6500 level, and so we maintain the short-term sales signal. That said, BTC is still clearly above the structural support level of $ 5850, so the long-term neutral signal is safe, giving hope to the bulls that an important fund is forming in the most valuable currency.
Traders and investors should not yet place positions here, and a move below $ 6275 could trigger a $ 6000 level test, while other strong resistance zones above $ 6500 are ahead of $ 6750 and $ 7,000.
Altcoin under pressure of sale again
ETH / USD, 4 hour chart analysis
Ethereum tuned further down before triggering a short-term purchase signal, although it briefly exceeded the $ 220 level. The ETH is now drifting towards the $ 200 key support / resistance level, and the a lack of bullish follow-up confirms the long-term downtrend trend still dominant. That said, the declining trend lines are just above the current price level after the long consolidation period, and there is still some hope for the bulls that the currency can avoid another downswing in the market for bears.
For now, traders and investors should still avoid Ethereum, with support levels below $ 200 found at $ 180, $ 170 and $ 160 and with high resistance levels ahead of close to $ 235 and $ 260.
LTC / USD, 4 hour chart analysis
Litecoin has quickly returned to the support / resistance level of $ 51 after the failed rally attempt, and although it is still well above its downtrend, the technicians remain clearly bearish on all time. The odds favor another $ 47 level test in the coming weeks, while a recovery above $ 56 would be necessary for a short-term trend change.
EOS / USD, analysis of the 4-hour chart
EOS showed relative strength during the rally of the first week, but could not maintain the bullish momentum and the large selloff dragged the coin too low. Now EOS is back near the support / resistance zone near $ 5.35 which has been the focus of attention for months.
The long-term configuration remains bearish, while in the short term, the currency returned to a neutral signal after the failed rally attempt, with key support levels found near $ 5 and $ 4.50.
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Disclaimer: the analyst possesses cryptocurrency. It holds investment positions in currencies, but does not carry out short-term or day-trading transactions, nor holds short positions on any of the currencies.
