BTCUSD dropped to its monthly low of $8,900 on Monday. Soon after, the customary drop in most of the cryptos followed. Ripple or XRPUSD, which was already dominated by Bears, reached to $0.181.
The short temporary rise in XRPUSD and LTCUSD was because of the short covering. As soon as the Altcoins fell, several traders entered a short position and had to cover these positions. As soon as Ripple and Litecoin reached a decent target level, another round of sell-off followed. It led to a further decline.
The four-hour timeframe for XRPUSD shows that Ripple is at a crucial support level. It is currently trading at $0.190. Although Ripple retested this support many times, the momentum looks weak this time.
A drop from the current levels could trigger a steep decline. The MACD indicator might confuse some traders as it had a Bullish crossover despite Bearish technicals. It is essential to keep in mind that MACD is a lagging indicator, meaning it takes time to capture the price movement.
The four-hour timeframe for Litecoin shows that its technical indicators are better poised than Ripple. The resistance is at $45.05, while the support is at $41.
LTCUSD is also at a fundamental level of $43. However, the traded volume for Litecoin is quite good, and the number of green candles is higher than the red ones. It indicates that the Bulls are fighting hard to gain momentum.
One crucial indicator that’s worrisome for the Litecoin investors is the Death Cross formation in the four-hour chart. It could cause the price to crash almost immediately. However, the Death Cross needs confirmation before taking effect. If the traded volume abruptly increases, only then will the Death Cross will take effect.
Therefore, Litecoin traders should be careful before taking any aggressive trades at the moment.