The cryptocurrency market shows a sign of disruption as major tokens record a sharp drop toward critical support levels. Bitcoin in particular, has relinquished all its gains from this week, highlighting rising bearish sentiment.
Following in the footsteps, the altcoin market witnesses a similar price trend with Ethereum & XRP price constantly failing to break out of their consolidated price trend. With this, investors are actively looking for important watch zones as the market could expect increased volatility due to the ongoing geopolitical tensions.
Are you one of many to understand the market possibilities? In this article we will uncover the possible short-term targets of Bitcoin, Ethereum, & XRP tokens.
Bitcoin Price Forms A Bullish Pattern?
After recording a top of $110,198 this week, the Bitcoin price has experienced a strong selloff, resulting in its value recording a low of $104,161 yesterday. This has resulted in an increased FOMO-like situation in the crypto market. Moreover, with a drop of over 50% in its daily trading volume its valuation stands at $2.08 trillion.
Despite this downturn, BTC has formed an expanding channel pattern in the daily time frame. This suggests a high possibility of a reversal pattern in the upcoming time.
The 50-day EMA acts as a strong support around the $102,655 mark, indicating a major retest point around that level. Furthermore, the 200-day EMA displays a constant rise in the daily time frame, suggesting a building momentum.
On the other hand, the Moving Average Convergence Divergence (MACD) indicator shows a rising red histogram with its 12 & 26-day EMAs witnessing a bearish crossover. This indicates a mixed short term price action for BTC.
If the odds began to favor the bulls, this could result in the largest crypto token retesting its upper price targets of $107,281 & $109,631 respectively. Conversely, a bearish setback may pull the value toward its low of $104,810 or lower support of $102,470 during the upcoming week.
Ethereum Price Repeatedly Fails To Gain Momentum!
The ETH coin price continues recording a sideways price action by constantly hovering around the $2,500 mark this week. With this, it has formed a strong consolidated price action between $2,800 and $2,400 range. Moreover, with a project valuation of $307.28 billion, it dominates by 9.3689%.
In the above price chart, the trendline currently remains above 50, 100, & 200-day EMAs, and is currently retesting the 20-day EMA, suggesting strong bullish momentum. These Exponential Moving Averages (EMA) play a vital role during price corrections or market rallies, providing potential “safe exit points” for short-term investors.
The Relative Strength Index (RSI) has failed to breach the overbought range, resulting in it dropping toward its neutral point in the daily time frame. This type of trend suggests an increasing bearish action for Ethereum in the crypto market.
The Ethereum price could retest its immediate resistance level of $2,603 if the bulls regain momentum. Further upper resistance levels still remain around the $2,750 and $3,000 respectively. Conversely, a bearish reversal may result in it retesting its crucial support trend level of $2,400 or $2,205 shortly.
XRP Price On Crossroads This Week?
Ripple’s XRP price falls prey to a similar price action as it records a consolidated price action over the brief period of time. Consequently, this altcoin’s dominance has dropped to 3.86% this week with a market capitalization of $127.015 billion. However, despite such action, it continues to maintain its 4th position in the market.
The Stoch RSI trendlines are at 36.24 (blue) and 52.86 (orange). The sharp drop toward the halfway mark suggests a weak bullish sentiment for altcoin in the 1D time frame. Notably, this indicator helps traders identify the overbought and oversold conditions more accurately than traditional RSI.
The Bollinger Bands (BB) records a narrow passage suggesting a decline in the price action for the XRP price. Adding to this, the price trend has dropped below the Simple Moving Average (SMA) line and is on the verge of retesting its lower band.
A successful retest around the $2.14 mark could result in it heading toward its upper price targets of $2.35 and $2.57 respectively. Conversely, its key support trendline still remains around the $2 mark if the market turns bearish.
Also Read: Elon Musk to Buy $50 Billion in Ripple’s XRP: Fact Check
