- Bitcoin price is nearing its key resistance of $106,400; a firm close above suggests a recovery is on the cards.
- Ethereum bounces off its 200-day EMA, indicating strong support and potential for further upside.
- XRP is nearing its key resistance at $2.27; a daily close above could catalyze a recovery trend.
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are showing signs of recovery after a period of consolidation and bearish pressure. BTC, ETH and XRP prices rebound slightly, approaching their key resistance levels; a daily close above could open the door for further upside.
Bitcoin price could revive rally if it closes above $106,400
Bitcoin price declined and closed below its daily level of $106,406 last week. However, it recovered slightly during the weekend and also on Monday. BTC faced resistance again around the $106,406 level the next day. At the time of writing on Wednesday, it recovers slightly, approaching this resistance level.
If BTC recovers and closes above $106,406, it could extend the rally toward its all-time high of $111,980.
The Relative Strength Index (RSI) on the daily chart reads 54 and points upwards after rebounding from its neutral level of 50, indicating bullish momentum is gaining traction.
BTC/USDT daily chart
However, if BTC fails to close above the $106,406 daily resistance, it could extend the decline to retest its next key support level at $100,000, a psychological level.
Ethereum price could bounce higher as the 200-day EMA remains strong
Ethereum price has been consolidating between $2,461 and $2,724, its 200-day EMA and daily resistance levels, respectively, for 26 consecutive days. At the time of writing on Wednesday, it trades slightly above, nearing its upper consolidation level at $2,724.
If ETH breaks and closes above its upper consolidation level at $2,724, it could extend the rally toward its psychologically important level at $3,000.
The RSI on the daily chart reads 62, above its neutral level of 50, indicating bullish momentum.
ETH/USDT daily chart
However, if the 200-day EMA at $2,461 fails to hold as support, ETH could extend the decline to retest its next support level at $2,329, its 50-day EMA.
XRP price could recover if it closes above its 50-day EMA
XRP price closed below its daily support at $2.23 on Friday and declined by 4.65%. However, it recovered from its fall in the next four days. At the time of writing on Wednesday, it is approaching its key resistance at $2.23.
If XRP breaks above the $2.23 level and closes above its 50-day EMA at $2.27, it could extend the recovery to retest its next resistance level at $2.72.
The RSI on the daily chart reads 47 and points upward toward its neutral level of 50, indicating a weakening of bearish momentum.
XRP/USDT daily chart
On the other hand, if XRP faces rejection from its $2.23 level, it could extend the decline to retest its next daily support at $1.96.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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