While the major cryptocurrencies experienced another rally attempt yesterday following last week’s Litecoin-led surge, most of them failed to hit sustained new highs. The top coins are still holding on to most of their gains, but the lack of bullish momentum is a negative sign. With the bearish long-term picture in mind, traders should still be cautious even with the relatively stronger coins, as the odds of yet another failed move are high.
EOS/USD, 4-Hour Chart Analysis
Trading activity remained higher than in recent weeks in the segment, but with no real technical progress in the majority of the currencies (only EOS hit a new sustained swing high among the top coins), bear market rules still apply. With that in mind, traders should still only consider short-term positions here with strict risk-management rules. From a broader perspective, the re-test of the late-year lows remains likely, and as the top 3 coins are not able to lead the way higher the rally attempt continues to be suspicious.
BTC/USD, 4-Hour Chart Analysis
Bitcoin continues to drift lower in the low volatility environment, showing clear signs of relative weakness since Friday’s surge. The coin fell below the key $3600 support/resistance level today, and although it remains above its prior trading range, its market is still dominated by sellers. While BTC remains on a short-term buy signal in our trend model, traders should only enter small speculative positions here.
The long-term outlook for Bitcoin is clearly bearish and our trend model remains on a long-term sell signal as well. The coin faces strong resistance near $3850 and between $4000 and $4050, while support is found just above $3450, near $3250, and in the key zone near the $3000 price level.
LTC/USD, 4-Hour Chart Analysis
Litecoin now cleared the overbought short-term momentum readings thanks to the volatile consolidation, but today, it violated its recent swing low. That said, the break-out remains intact and our trend model is on a short-term buy signal, although the long-term setup is still negative.
Above the $38 price level, the immediate outlook is still bullish, but given the segment-wide trends, traders should continue to be cautious with new positions. The next key resistance level above the recent swing high is ahead near $51, with further support found near $34.50 and between $30 and $30.50.
Ethereum Test Swing High as Ripple Remains Under Pressure
XRP/USDT, 4-Hour Chart Analysis
Ripple continues to be the weakest among the top coins, as it has been the case ever since its late-January rally attempt. XRP is still hovering near the $0.30 support/resistance level after failing near the declining short-term trendline that capped the price of the coin since early January.
Despite the recent spikes higher, the coin will likely re-visit the $0.28 level and the August low near $0.26 in the coming weeks, as bearish forces remain dominant in the market. Above the short-term trendline strong resistance levels are ahead near $0.32, $0.3550, and $0.3750.
ETH/USD, 4-Hour Chart Analysis
Ethereum showed short-term strength in the last couple of days, getting close to Monday’s high and testing its weekend high in the process. While the short-term strength could mean that ETH will push higher again in the coming days, the long-term technical setup is still hostile for bulls.
The coin is holding up above the key short-term $112 support/resistance level, with the $120 level being in focus in recent days, but further strong resistance is ahead near $130. Although our trend model is on a short-term buy signal, from a long-term perspective, Ethereum is still relatively weak, and it will likely test the $95-$100 zone again, with a possible move towards the prior bear market low near $80.
Featured image from Shutterstock
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.