Crypto Update: Ripple Leads Oversold Bounce


The major cryptocurrencies are holding on to their recent short-term gains, as the oversold bounce that followed the early-week liquidation continues. One of the most oversold top coins, Ripple is leading the way higher as it broke out above the $0.30 resistance and rallied to $0.32 in early trading. The total value of the market reached $215 billion, but as Bitcoin and Ethereum are still capped by the $6500 and $300 levels respectively a broad short-term trend change is not confirmed in the segment.

Monero is also among the relatively stronger coins today, extending its bounce above the $90 level, and getting close to the key $100 zone in the process. Litecoin, which has been also showing early signs of strength, failed to build on the rally, and as the leadership is still weak, correlations are high, and the downtrends are intact with regards to most of the coins, traders should remain defensive until further signs of strength in the segment emerge.

XRP/USDT, 4-Hour Chart Analysis

Ripple is trading in the strong $0.30-$0.32 zone, after the overnight rally, being the only major that triggered a short-term buy signal. Despite the signal, the long-term bearish setup is still clearly in place, and the coin continues to face strong resistance at $0.32, with a weaker level also ahead near $0.35, and traders should only treat the current move as a counter-trend rally. Support below $0.30 is found near $0.28, with a stronger long-term level at $0.26, and the coin already cleared the oversold short-term momentum readings.

ETH/USD, 4-Hour Chart Analysis

We are still looking at Ethereum as the most important gauge of the state of the market, as ETH has been in the epicenter of the recent steep selloff, and now it is trying to gain ground above the key $300 level.

Despite the relative stability of the coin, it failed to follow Ripple higher, and also failed to trigger a short-term buy signal, as the declining trend clearly remained intact, even as the steepest trendline has been broken. The coin faces strong resistance just above the current price level and near $335, while support is found between $275 and $280 and near $260.

Bitcoin Still Stuck Below Resistance

BTC/USD, 4-Hour Chart Analysis

BTC has been trading in a narrow range below the $6500 level as altcoins attempted to rally, but the relatively strong coin still failed to show bullish meaningful momentum. The coin remains on a neutral short-term trend signal, and with the key long-term $5850 level not being in danger, the long-term outlook is also neutral.

A move above $6500 could still trigger a short-term buy signal, but the rest of the segment will likely need further consolidation for a trend change, and further strong resistance is ahead at $6750 and $7000, while support is found at $6275 and $6000.

EOS/USDT, 4-Hour Chart Analysis

While a few coins are showing promising short-term signs, most of the majors remain deeply wounded from a technical perspective, with the likes of NEO, IOTA, DASH, and EOS all managing only a weak bounce, despite the clearly oversold momentum readings. With that in mind, the odds of a re-test of the lows are still high, and volatility might increase again in the coming days.

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.



Source link

Comments (No)

Leave a Reply