- Bitcoin price breaks down, exposing BTC to the risk of sliding below the key $24,500 June lows.
- Ethereum price could fall 10% to the $1,400 range if BTC price shows weakness below $25,586.
- Ripple price eyes continued downtrend as XRP tests the descending parallel channel at $0.4600.
Bitcoin (BTC) price indicates signs of an impending slump after losing a critical support level. The gloom has extended to Ethereum (ETH) and Ripple (XRP) prices, as the broader market downtrend becomes clearer now more than ever before.
Also Read: Bitcoin price recovery bound to be delayed as Texas power crisis threatens miner reserves.
Bitcoin price faces risks of a downtrend
Bitcoin (BTC) price is down almost 3% over the last day, against a 99% increase in 24-hour trading volume. However, the odds favor the downside, with momentum indicators showing that buying pressure continues to reduce.
Furthermore, a death cross hangs over Bitcoin price, indicated by the 50-day Moving Average (MA) almost crossing below the 200-day MA. A death cross pattern occurs when the short-term moving average of an asset crosses below its long-term moving average.
With the above, Bitcoin price could fall toward $24,500. This level is of particular significance as it marks the June 2023 lows and the last lowest high. Therefore, a solid break below it could extend the downtrend, possibly sending BTC to tag the $23,600 range, levels last tested on May 13. In a dire case, the downtrend could continue to $21,300, levels last seen in March. Such a move would constitute a 15% downswing from current levels.
BTC/USDT 1-day chart
On the other hand, if the $24,500 support level holds, Bitcoin price could have a chance at a recovery. Increased buying pressure above this level could change the narrative for Bitcoin, sending BTC north to reclaim the $25,586 support level.
In a highly bullish case, the king of crypto could extend to breach the resistance confluence between the 50- and 200-MA at around $27,616 before a neck higher possible toward the $28,838 hurdle.
In highly ambitious cases, Bitcoin price could shatter past the $30,000 psychological level before a test of the range highs above $31,804.
The bullish convergence between Bitcoin price and two momentum indicators, RSI and MACD, adds weight to prospects of a recovery. This is indicated by BTC price recording lower lows which are not mirrored by either RSI or MACD.
Also Read: Bitcoin Weekly Forecast: BTC could revisit $21,000 as sell signals multiply ahead of US CPI.
Ethereum price risks 10% fall
Ethereum price (ETH) is $1,575 at press time, sliding south with a forecasted 10% slump to $1,407 if Bitcoin price tags $24,500.
ETH/USDT 1-day chart
Conversely, a recovery in Bitcoin price, would influence Ethereum price to correct north, possibly converting the $1,575 resistance level back to a support floor before breaching past $1,800 to tag the psychological $2,000 level.
Ripple price to fall back to the confines of a bearish pattern
Ripple (XRP) price tests the upper boundary of a descending parallel channel, with momentum indicators (RSI and AO) showing a possible breakdown back into the foothold of this bearish technical formation.
A decisive flip of the $0.4600 support level back into a resistance would increase the odds for a downtrend, confirmed once XRP tests the midline of the descending parallel channel at $0.4191. In the dire case, the payments token could extend lower to the channel’s base at $0.3562, levels last seen in March.
XRP/USDT 1-day chart
A hold at the upper channel line and resurgence by the bulls, however, could reverse the trend for Ripple price, with a likely breach of the 200-day Exponential Moving Average (EMA) hurdle at $0.5224 before XRP can confront the resistance confluence between the 50- and 100-day EMA at around the $0.5505 and $0.5510 range. This would indicate a 15% ascent above current levels.
Also Read: XRP price reverses all gains since Judge Torres ruling as Ripple holders sentiment turns negative.
Ripple FAQs
What is Ripple?
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
What is XRP?
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
What is XRPL?
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
What blockchain technology does XRP use?
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.