Top 3 Price Prediction: Crypto market enters a decoupling phase as Bitcoin, Ethereum and XRP price diverge


  • Bitcoin price could be bottoming out. 
  • Ethereum price targets $1500.
  • XRP price distortion hints at another sell-off.

Bitcoin, Ethereum and XRP price are showing different signals, warranting the idea of a crypto season ideal for intraday traders.

Bitcoin price bottom is near

Bitcoin price is following the technicals forecasted in the last bearish thesis. Ultimately, traders should consider a truncated wave down to fool overly bearish speculators in the market. The steep nature of the slope before a breach of the lows could be hinting at Smart Money's desire to finally end the accumulation phase at the $28,000 zone before sending the BTC price into the $35,000 levels. 

Bitcoin price consolidation also signals Smart Money involvement as the sideways action takes place under relatively low volume. The objective of market makers is always subtle and barely detectable, leaving little to no evidence of their true intentions. A sharp move could be hours away for the Bitcoin price, which will leave traders and investors with the 2nd best option for joining the trend later with less profitable returns.

Invalidation of the bearish downtrend is a breach at $26,500. If the bears can breach this level, a break into 424,500 will be the next target, resulting in a 15% dip from the current Bitcoin price.

tm/btc/5/20/22

BTC/USDT 3-Hour Chart

Ethereum price Positions for a new low

Ethereum price warrants the need for traders to pull back and allow the technicals to manifest. The ETH price is 12% above liquidity levels established in July 2021. The idea that |Smart Money won't grab the orders at these levels without trying to shake out weak hands and maximize their positions at this point is a questionable assumption.

Ethereum price will likely grab liquidity under $1500, but new lows could be established. The crypto market could be approaching a decoupling phase where investors jump ship from the Ethereum foundation and convert their assets into Bitcoin or XRP. Time will tell.

Invalidation of the bearish downtrend is a breach at $2950. If the bulls breach his level, a $4,000 target could be on the cards resulting in a 100% increase from the current Ethereum price.

TM/ETH/5/20/22

ETH/USDT 3-Day Chart

XRP price is severely diverging. 

XRP price seems to be abandoning the rule that all cryptos move in unison. The XRP price shows distinct differences compared to Ethereum and Bitcoin prices. The deep retracement established this week into the highs at $0.43 warrants the idea of an extended decline in the near future.

XRP price has targets of $0.35 and $0.30. Due to the newly presented decorrelating evidence, it is not advisable to depend on Bitcoin for a definitive market bottom. A significant news event could be coming very soon regarding the XRP and SEC, which could be the catalyst to fully set XRP apart from all other cryptos in the space.

Invalidation of the bearish thesis is a breach at $0.45. If the bulls breach this level, a rally towards $0.31 could occur, resulting in a 25% increase from the current price.

TM/XRP/5/20/22

XRP/USDT 15 Min Chart

 


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume

PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume

Decentralized exchange (DEX) PancakeSwap (CAKE) announced in an official tweet that it has crossed $1 billion in trade volume on the Layer 2 chain, Base. CAKE on-chain metrics support the thesis of a recovery in the DEX token’s price. 

More Cryptocurrencies News

Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt

Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt

Shiba Inu (SHIB), the second-largest meme coin in the crypto ecosystem, recently hit a milestone in the volume of tokens burned. Shiba Inu has burnt over 410.72 trillion SHIB tokens since the inception of the burn mechanism in the project, worth over $9 billion.

More Shiba Inu News

Dogwifhat crashes 60%, but here's why you should not buy WIF yet Premium

Dogwifhat crashes 60%, but here's why you should not buy WIF yet

Dogwifhat (WIF) price shows a slowdown in the bearish momentum as it sets up a potential range. This development could lead to a good buying opportunity from a long-term perspective. 

More Dogwifhat News

XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference

XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference

XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court. 

More Ripple News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP