Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are nearing critical technical levels as the cryptocurrency market shows signs of stabilization. Traders are intently observing whether these assets can break through their respective resistance points and achieve decisive daily closes, which could indicate the onset of a short-term recovery.
Bitcoin experienced a promising bounce-back after retesting the 78.60% Fibonacci retracement level at $85,869. Following this support level, BTC surged by approximately 3.67% over the course of three days. As of Monday, Bitcoin is approaching a descending trendline formed by connecting multiple highs since October 6. A breakthrough above this trendline, along with a daily close above $90,000, could pave the way for BTC to extend its recovery toward the next resistance level at $94,253. The Relative Strength Index (RSI) currently sits at 45, indicating upward momentum toward the neutral 50 mark, hinting at a slowdown in bearish activity. For this bullish trend to maintain strength, the RSI will need to surpass the neutral threshold. Furthermore, the Moving Average Convergence Divergence (MACD) indicator displayed a bullish crossover on Saturday, reinforcing the recovery narrative. Should Bitcoin encounter resistance, a correction could see it decline toward the vital support at $85,569.
In parallel, Ethereum has seen favorable market conditions after retesting its support level along a descending trendline. The asset has shown a recovery of nearly 6% over the past three days and is now poised near the daily resistance level of $3,017. A successful daily close above this mark could lead ETH to extend its gains toward last December’s high of $3,447. The RSI is currently reading 47—again reflecting an upward trajectory toward 50, shedding light on diminishing bearish momentum. Similar to Bitcoin, for ETH’s bullish sentiment to hold, it must see its RSI break above the neutral area. Additionally, the converging MACD lines indicate a potential for a shift toward bullish momentum. Should Ethereum face rejection at these levels, a decline could push it down to the key support at $2,749.
Ripple is also attempting to carve out a path for recovery after finding support at the lower trendline of a falling wedge pattern on Friday. Following a slight recovery, XRP is now eyeing the daily resistance at $1.96. A successful breakout and close above this resistance could see XRP’s price rally toward the 50-day Exponential Moving Average (EMA) at $2.13. However, the current RSI of 42 remains beneath the neutral threshold, suggesting lingering bearish tendencies. The MACD shows signs of a bullish crossover as of Monday, which indicates early inklings of positive momentum. Should XRP fail to sustain its upward trajectory, it could fall back toward Friday’s low of $1.77.
Market analysts will be tuning in closely to the developments surrounding these cryptocurrencies to gauge their potential movements in the trading landscape.
