Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – Bulls firmly in control as BTC breaks $93K, ETH and XRP extend gains
- Bitcoin extends its rally above $93,000 on Monday after a decisive breakout from a three-week consolidation range.
- Ethereum continues its gains after bouncing from support at the 50-day EMA.
- XRP prints its fifth consecutive green candlestick, targeting a move toward the $2.35 resistance level.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) extended their rallies on Monday, gaining more than 4%, 6%, and 12%, respectively, in the previous week. The top three cryptocurrencies by market capitalization could continue to outperform, with bulls in control of the momentum.
Bitcoin rallies as it closes above the consolidation zone
Bitcoin's price closed above the upper consolidation range of $90,000 on Saturday and rose slightly the next day. At the time of writing on Monday, BTC continues its gains, trading above $92,700.
If BTC continues its upward trend, it could extend the rally toward the next resistance at $94,253, which aligns with the 61.8% Fibonacci retracement level drawn from the April low of $74,508 to October's all-time high of $126,199.
The Relative Strength Index (RSI) on the daily chart reads 62, above the neutral level of 50, indicating bullish momentum is gaining traction. In addition, the Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover and rising green histogram bars above the neutral level, further supporting the bullish outlook.
However, if BTC faces a correction, it could extend the decline toward the key support level at $90,000.
Ethereum gains momentum as it closes above its 50-day EMA
Ethereum price closed above the daily resistance level at $3,017 on Friday and rose slightly, closing above the 50-day Exponential Moving Average (EMA) at $3,120 on Sunday. As of Monday, ETH is trading above $3,190.
If the 50-day EMA at $3,120 holds as support, ETH could extend the rally toward the December 10 high of $3,447.
Like Bitcoin, Ethereum’s RSI and MACD indicate bullish signals, further supporting a positive view.
On the other hand, if ETH closes below the 50-day EMA at $3,120 on a daily basis, it could extend the decline toward the daily support at $3,017.
XRP bulls are in control of the momentum
XRP price rose nearly 7% on Friday and closed above the daily resistance level at $1.96. It continued to gain over the next two days, surpassing the 50-day EMA at $2.04. At the time of writing on Monday, XRP is trading above $2.14.
If XRP continues its upward trend, it could extend the rally toward the next key resistance at $2.35.
Like Bitcoin and Ethereum, XRP momentum indicators (RSI and MACD) showed bullish signals and support a positive outlook.
However, if XRP faces a pullback, it could extend the correction toward the 50-day EMA at $2.04.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Recommended Articles
