• Bitcoin price steadies along the 100-day simple moving average (SMA) before releasing higher.
  • Ethereum price refuses to surrender leadership role with an all-time high.
  • Ripple price stabilizes at the psychologically important $1 before catapulting 30%.

The three majors, BTC, ETH, and XRP, played to the technical indicators like maestros, holding essential support at the most crucial moments and proving that technicals have a role in assessing the state and direction of individual cryptocurrencies.

Bitcoin price emphatic as it closes with the best day since February

At Sunday’s low, BTC had lost almost 30% from the April high and closed the week with the second-largest weekly loss since the March meltdown in 2020, the other being in February of this year. The low harmonized with the junction of the March 25 low at $50,305 and the 100-day SMA at $49,500. In parallel, the force of the sell-off drove the flagship cryptocurrency to the most oversold reading on the daily Relative Strength Index (RSI) since the March 2020 low. Hence, resetting it to pursue fresh highs and shaking off the bearish momentum divergence that cast a shadow since February.

Before getting too fuzzy, BTC faces hurdles on the path to new highs, such as the 10-week SMA at $54,682 and the 50-day SMA at $56,982. The lower trend line of the rising wedge at $61,870 and, of course, the 361.8% Fibonacci extension of the 2017-2018 bear market at $63,777. To conquer the multitude of resistance levels, the bellwether cryptocurrency will need to command better volume than yesterday.

BTC/USD daily chart

BTC/USD daily chart

Was it a dead-cat bounce? A natural question and relevant in the coming days, particularly if a continuation of the rally stalls around the current price. A failure to ignite has to prompt speculators to define the intersection of the March 25 low and the 100-day SMA as critical support. Any failure at that level exposes BTC to a quick decline to the convergence of the February low at $43,016 with the January high at $41,986 and the 38% retracement of the rally since the March 2020 low at $41,581.

Ethereum price strength affirms leadership intentions

Since the end of March, ETH has not closed one week with a loss. A noteworthy technical achievement considering the magnitude of the losses incurred by most of the altcoins. In fact, the smart contracts token has a printed an all-time high each week during that time. 

Moving forward, ETH has no resistance of note until the confluence of the 161.8% extension of the March 22-23 sell-off at $3,008 with the psychologically important $3,000. Considerable resistance emerges at the cluster of 261.8% extensions related to the 2018 bear market, the February crash, the March decline, and the April decline. The range is from $3,252 to $3,587.

ETH/USD daily chart

ETH/USD daily chart

No doubt ETH could throw a curveball and flip from relative strength leader to the ugly stepchild. Support begins at $2,504 and then falls to $2,041, followed by the 50-day SMA at $2,026 and the rising trendline at $1,960.

Lastly, take note that ETH is printing new highs without the daily RSI printing new highs. A bearish momentum divergence to watch.

Ripple price gain casts shade over most of the cryptocurrency complex

Last week XRP closed down 26.41%, the largest weekly loss since the SEC charged crash in December 2020 of 49%. It yielded a total decline of 55% for the international settlements token from the April high.

XRP responded with a 30% gain yesterday, but today’s follow-through has faded quickly at the 50% retracement of the April decline. More resistance can be expected at the 61.8% retracement at $1.55 and the 78.6% retracement at $1.73.

The prominent levels in the crosshairs are $2.00 and the 61.8% retracement of the 2018-2020 bear market at $2.08.

XRP/USD daily chart

XRP/USD daily chart

The path for Ripple is more complicated than most cryptocurrencies at the moment, with the overhang of the SEC case against key executives headlining media reports regularly. A positive outlook will remain the best approach unless the descending trendline from the April high at $1.15 fails. After that, the big $1 is the final arbitrator over whether XRP heads to $0.80 or not.


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


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP