Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC gears up for volatility while ETH and XRP fight to stay afloat
- Bitcoin price has been consolidating between $94,000 and $100,000 since early February.
- Ethereum price is trading around $2,740 on Friday after a mild rise of 3% so far this week.
- XRP is extending its decline on Friday after facing resistance around the $2.72 level the previous day.
Bitcoin (BTC) price has been consolidating between $94,000 and $100,000 since early February; this consolidation phase could soon end. Ethereum (ETH) price shows signs of strength while Ripple (XRP) price fights to stay afloat.
Bitcoin consolidation could come to an end soon
Bitcoin price has been consolidating between $94,000 and $100,000 for more than two weeks. On Tuesday, BTC declined and found support around the lower boundary of the consolidating range and rose 2.75% until Thursday. At the time of writing on Friday, it hovers around $98,000.
If BTC recovers and breaks above the upper boundary of the consolidating range of $100,000, it would extend the recovery to retest its January 30 high of $106,457.
The Relative Strength Index (RSI) on the daily chart reads 50, hovering at its neural level of 50 and points upwards, indicating slight strength in momentum. For the bullish momentum to be sustained, the RSI must trade above its neutral level of 50.
The Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover on the daily chart on Thursday, giving buy signals and indicating an upward trend ahead.
BTC/USDT daily chart
However, If BTC breaks and closes below the lower boundary of the consolidating range of $94,000, it could extend the decline to test its psychologically important level of $90,000.
Ethereum momentum indicators hints a rally ahead
Ethereum price faced a rejection around its descending trendline on February 1 and declined 13.87%, closing below its $3,000 psychologically important level the next day. ETH continued its correction by nearly 9% in the following week. However, ETH prices recovered slightly by 1.3% the previous week. As of this week, it continues to recover by 3%, trading around $2,740 on Friday.
If ETH continues to recover, it could extend the recovery to test the $3,000 level.
The RSI on the daily chart reads 44, bounced off from its oversold level of 30 last week, indicating fewer signs of selling pressure. However, the RSI must trade above its neutral level of 50 to sustain the bullish momentum. Such a development would add a tailwind to the recovery rally. Moreover, the MACD indicator showed a bullish crossover on the daily chart last week, giving buy signals and indicating an upward trend ahead.
ETH/USDT daily chart
On the other hand, if ETH continues its decline and closes below $2,359, it will extend the decline to test its next weekly support at $1,905.
Ripple is set for a decline as it faces resistance around the $2.72 level
Ripple price rallied 14% last week, breaking above the daily level of $2.72 on Friday and finding support around it on Sunday. However, XRP closed below its $2.72 support level on Monday and declined 6% until Tuesday. It rose 6.8% on Wednesday. However, it faced resistance around $2.72 and declined 1.83% the next day. At the time of writing on Friday, it continues to decline, trading around $2.64.
If the daily level of $2.72 holds as resistance, it will extend the decline to test its next support level at $1.96.
The RSI on the daily chart reads 49, rejecting its neutral level of 50, indicating slight bearish momentum.
XRP/USDT daily chart
Conversely, if XRP closes above $2.72 and finds support, it will extend the rally to retest its January 16 high of $3.40.
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.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
