Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, and XRP steadies after recent sell-off
- Bitcoin stabilizes around $111,400 on Friday after finding support near the 100-day EMA earlier in the week.
- Ethereum price finds support around its daily level at $4,488, eyeing a potential rally toward record highs.
- Ripple’s XRP holds above $2.78, aiming for further recovery ahead.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) remain steady around their key support levels on Friday after correcting by nearly 2%, 7%, and 3%, respectively, so far this week. Buyers stepping in at these key support levels could hint at potential recovery for the top three cryptocurrencies. Despite signs of stabilization, traders remain cautious as broader market sentiment stays fragile.
Bitcoin finds support around the 100-day EMA
Bitcoin price found rejection from a previously broken trendline on Saturday and declined by more than 5% until Monday, closing below its 100-day Exponential Moving Average (EMA) at $110,883. However, BTC recovered slightly on Tuesday and found support around this level for the next two days. At the time of writing on Friday, it trades around $111,400.
If the 100-day EMA at $110,883 continues to hold as support, BTC could extend the recovery toward its next daily resistance at $116,000.
However, the Relative Strength Index (RSI) on the daily chart reads 42, which is below its neutral level of 50, indicating bearish momentum. For the recovery rally to be sustained, the RSI must move above its neutral level.
BTC/USDT daily chart
On the other hand, if BTC corrects and closes below its 100-day EMA, it could extend the decline toward its next key support at $103,991, the 200-day EMA.
Ethereum could rally toward record high if the daily support holds
Ethereum reached a new all-time high of $4,956 on Sunday but failed to maintain its upward momentum, declining 8.45% the next day. However, it recovered 5% on Tuesday, closing above its daily resistance at $4,488 and found support around this level. At the time of writing on Friday, it continues to find support around $4,488.
If ETH continues its recovery, it could extend the rally toward its record high of $4,956. The RSI on the daily chart reads 55, above its neutral level of 50, indicating bullish momentum.
ETH/USDT daily chart
However, if ETH faces a correction, it could extend the decline to retest its next daily support at $4,232.
XRP shows early signs of recovery
XRP price corrected over 5% on Monday and closed below its 61.8% Fibonacci retracement level at $2.99. However, it recovered from Monday’s fall the next day after finding support around its 100-day EMA at $2.76. At the time of writing on Friday, it hovers at around $2.93.
If the 100-day EMA at $2.76 continues to hold as support, it could extend the rally toward its next daily resistance at $3.40.
The RSI on the daily chart reads 46, nearing its neutral level of 50, indicating early signs of fading bearish momentum. Moreover, the MACD also showed decreasing red histogram bars, supporting the fading bearish momentum view.
XRP/USDT daily chart
However, if XRP faces a correction, it could extend the decline toward its key daily support at $2.72.
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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