The cryptocurrency segment had a relatively quiet weekend after an eventful and volatile week, with the major coins mostly holding on to their gains. The divergence between the largest currencies continued, with some of the leaders of the recent rally remaining strong, giving hope for bulls that the move could be more than just a counter-trend correction.
That said, the largest altcoins are weak, and with Ethereum and Ripple both struggling to gain momentum, the rally in the coins with smaller capitalization remains suspicious in the light of the broader technical setup. The long-term downtrend is still dominant in the case of most of the top coins, the total value of the market is still well below $250 billion, and more progress would be needed for a trend change. With that in mind
BTC/USD, 4-Hour Chart Analysis
Today the majors are modestly higher, with Liteocin, Dash, and NEO leading the way, while Bitcoin is trading on one-month high, Bitcoin has been showing strength in the last days, drifting higher above the major resistance one between $7200 and $7300. Our trend model remains on a short-term buy signal, since the weak uptrend is intact, even as the momentum of the move is not convincing.
The largest coin is still encouragingly strong, holding up clearly above the crucial $6750 level, and outperforming its most important peers. Further support levels are found near $7000, $6500, and $6275, while resistance is ahead between $7650 and $7800.
ETH/USD, 4-Hour Chart Analysis
Ethereum hasn’t followed the leaders higher, although it managed to avoid a breakdown below the $275-$28 zone despite an overnight spike lower. The coin is stuck between the primary support zone and the $300 resistance, and the longer-term oversold momentum readings are easing, with the longer-term downtrend clearly being intact. The short-term sell signal remains in place, with strong support found near $260 and further resistance ahead at $335, and near $360.
Altcoins Mixed but Leaders Still Strong
XMR/USDT, 4-Hour Chart Analysis
While the long-term picture is still bearish among altcoins, the short-term uptrend in some of the majors is intact and the momentum of the move remains strong in the case of Monero, Dash, and Litecoin is also showing promising signs. Monero us still on a short-term buy signal and it is getting close to the key long-term $150 level again, heading for a possible re-test of the level of the structural breakdown. XMR tackled the resistance levels at $108, $120, and $125 successfully, and above $150 the next level is found near $175.
XRP/USDT, 4-Hour Chart Analysis
Ripple has been trading similarly to Ethereum in the past days, being stuck in a relatively narrow trading range, and failing to gather bullish momentum, despite the improving environment in the segment. The coin is being held back by the dominant declining trendline and the $0.35 resistance level. The long-term bearish outlook is intact while our trend model is still on a short-term buy signal. Support levels are found at $0.32, $0.3130, $0.30, and $0.26, while short-term resistance is ahead at $0.38.
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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.