The major cryptocurrencies are sporting small losses today in European trading, with still Ripple being the most volatile from a short-term perspective. In general, the market is very calm, with most of the top digital currencies being stuck in the ranges that developed during the weekend. The volatility compression will likely lead to a larger scale move in the segment, and as the broader picture is still bearish, odds continue to favor a negative outcome.
The few coins on short-term buy signal haven’t been able to maintain their momentum, and despite the spikes higher in recent weeks, a trend change is still far from being confirmed in the segment. With Bitcoin and Ethereum both showing short-term relative weakness, traders should remain cautious with new positions even in the technically stronger.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is still trading in a very narrow range just above the $6500 price level, and despite the low volatility in the market, it’s only barely holding up within the weak rising trend. The trendline is part of a broader triangle pattern, which will likely be broken soon, and a move below the $6275 support level could set up a test of the $6000 level and possibly the key long-term zone near $5850.
Conversely a break-out above $6750 could open up the way to $7000 and the strong resistance zone between $7200 and $7300, and for now, the coin is still on neutral short- and long-term trend signals in our model.
Altcoins Mixed and Flat After the Weekend Lull
ETH/USD, 4-Hour Chart Analysis
While Ethereum turned lower together with the broader market today, it is still trading just below the key $235 support/resistance level while being well above the primary support zone near $200. The coin is still on a neutral short-term signal in our trend model, and although the long-term setup remains hostile, with a steep broader declining trend being intact, there is no immediate danger of a sell signal.
That said, traders and investors shouldn’t enter positions here, and strong resistance ahead at $260 and between $275 and $280 while further support is found at $180, $170, and $160.
XRP/USDT, 4-Hour Chart Analysis
Ripple is likely forming a triangle consolidation pattern following its recent strong rally and pullback, since it failed to stay above the $0.60 level after forming a swing low. Despite the current weakness, the short- and long-term buy signals remain in place, but given the segment-wide trends, we still urge traders to remain cautious with new positions here.
XRP is trading in the key zone near the $0.57 level currently, with further support found near $0.54, $0.51, and between $0.42 and $0.46, while resistance is ahead at $0.64, at $0.68 and between $0.725 and $0.75.
LTC/USD, 4-Hour Chart Analysis
Litecoin failed to build on the relative strength that it showed last week, and now the coin is close to triggering a downgrade to neutral in our trend model. LTC is currently testing the rising short-term trendline after dipping back below the $60 level, and a break below $56 would be a huge blow for crypto-bulls, as Litecoin has been among the more promising coins in the past weeks. Further support is found near $51 and $44, while strong resistance is ahead at $64.
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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.