The cryptocurrency segment is having another bearish session following the encouraging early-week strength. The rally attempt that was led primarily by Ripple, Bitcoin Cash, EOS, and Stellar fizzled out, and most of the majors have been drifting lower in the last couple of days. While the bullish move was the broadest in weeks, it still failed to gather steam and shift the market-wide trend.
Also, the long-term bearish setups remained intact with only Bitcoin and Ripple being on neutral long-term signals in our trend model. With that in mind, even in the case of another rally attempt, traders should remain cautious with new positions.
That said, should the sideways price action of the recent months continue and finally end with a broad bullish move, a new cyclical advance would provide good buying opportunities. Until such an improvement, we remain defensive towards the segment, even as volatility continues to be encouragingly low.
XRP/USDT, 4-Hour Chart Analysis
While Ripple gave back a large chunk of its recent gains, it is still trading above its prior range, and it is now the only coin on a short-term buy signal in our trend model. On a negative note, XRP is now below the $0.51 support/resistance level again, and the risk of a failed break-out is growing, especially given the broader trends in the market.
The key long-term zone between $0.42-$0.46 could be in play again next week, while a recovery above $0.54 would be a very bullish sign for the third largest coin. Further support levels are found at $0.375 and $0.355, while resistance is ahead near $0.57 and $0.64.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is drifting towards the primary support zone near $6275 again,