While the early-week rally in the majors triggered a few short-term upgrades in our trend model, the bearish overall picture in the cryptocurrency segment hasn’t changed, and for now, the move stalled. The leaders of the rally, Ripple, Bitcoin Cash, EOS, and Stellar are holding on to most of their gains despite the pullback, but the largest coins failed to maintain the bullish momentum.
With the strongest top coins holding up above their recent trading ranges, the break-out could still continue, but until a broader rally develops traders should remain cautious with new positions as the long-term downtrends are intact in most cases.
XRP/USDT, 4-Hour Chart Analysis
Ripple has been one of the strongest coins lately and it briefly topped the $0.54 level before rolling over to the current pullback. The coin is now testing the $51 level again, but it’s clearly above the prior trading range, keeping the short-term buy signal intact in our trend model, even as the long-term neutral signal is also in place.
Traders could play the short-term trend here, but full positions are still not advised, given the still bearish segment-wide trends. Strong resistance is ahead near $0.54, $0.57, and $0.64, while support zones below $0.51 are found between $0.42 and $0.46 and near $0.375.
BTC/USD, 4-Hour Chart Analysis
Although Bitcoin tested the $6500 level in the past couple of days, it failed to durably recapture the resistance level, so the short-term sell signal is still in place in our trend model. The relative weakness of the largest coin is a negative sign for the segment, but the current pullback is not severe and a new swing high above $6500 would be an important technical improvement,