Lorenzo Stroe
Independent Analyst
- Bitcoin is up more than 2% in the past few hours, eying up $11,000.
- Ethereum had a more substantial breakout climbing almost 3% towards $355.
- Similarly, XRP is back, attempting to rise above a critical pattern formed on the daily chart.
The entire crypto market jumped $11 billion in market capitalization after Square's announcement, a company founded by Jack Dorsey, CEO of Twitter, to purchase $50 million in Bitcoin.
Bitcoin changes its short-term direction
Following the recent price explosion from Bitcoin, it seems that bulls could change the current downtrend on the daily chart.
BTC/USD daily chart
The 100-SMA was kept as a support level, and Bitcoin is currently just above the 50-SMA. If this level can be transformed into a support point, it would be a significant event as it hasn't happened since July.
We can expect the next price target for Bitcoin to be $11,000, followed by $12,000 directly as there are barely any resistance levels on the way up.
Ethereum successfully defends a critical support level
In our latest ETH article, we discussed the possibility of Ethereum not defending the 100-SMA on the daily chart. However, due to the recent market move, the digital asset is now comfortably trading above the 100-SMA.
ETH/USD daily chart
The In/Out of the Money Around Price chart showed steep resistance ahead between $345 and $354; however, the renewed bullish strength was able to push ETH up to $352 already and, most likely, above $354 eventually.
The most critical support level is still the 100-SMA on the daily chart. A rejection into a breakout of this level will drop Ethereum to a maximum low of $270, at the 200-SMA on the daily chart.
XRP attempts to crack the descending parallel channel again
Once again, XRP is at the upper boundary of a descending parallel channel formed on the daily chart.
XRP/USD daily chart
-637377779616131703.png)
Unfortunately, the price was rejected once again from the upper trendline at $0.25. For now, the price has been able to stay above the 100-SMA, which means, bulls can still push the digital asset above the upper boundary and the 50-SMA, which currently coincide.
A breakout above both levels would be massive and likely to take XRP up to $0.30 as there are practically no resistance levels on the way up.
Like we stated in our last XRP technical analysis, a rejection from the upper boundary can potentially drop the price to $0.215.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.