Bitcoin and Ethereum Struggle, Ripple Shines Amid Technical Breakout

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Bitcoin (BTC) and Ethereum (ETH) Continue Declines; Ripple (XRP) Shows Strength

Bitcoin Bulls Face Challenges

Bitcoin (BTC) and Ethereum (ETH) continued trading lower on Monday after dropping over 3% and 10% last week, respectively. Meanwhile, Ripple (XRP) broke above a key technical pattern, signaling a potential rally ahead.

Bitcoin's price failed to hold above $100,000 on January 7, experiencing a 9.47% decline by Thursday. It managed a 2.35% rebound on Friday, bouncing off the 38.2% Fibonacci retracement level at $92,493, drawn from the November 4 low of $66,835 to the December 17 high of $108,353. Over the weekend, BTC hovered around $94,500 but traded slightly lower at $94,100 as of Monday.

Should BTC fall below the $92,493 level, it could extend its decline to the critical $90,000 mark. The Relative Strength Index (RSI) on the daily chart reads 45, below the neutral level of 50, signaling bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, reinforcing a downtrend. A recovery and close above $100,000 could, however, set the stage for a retest of the December 17 all-time high at $108,353.

Ethereum Faces Correction Risks

Ethereum (ETH) fell more than 10% last week after failing to close above the key resistance level of $3,730. By Monday, it edged lower to $3,257, nearing the crucial support level of $3,207.

A close below $3,207 could lead ETH to test the psychological $3,000 level. The RSI on the daily chart stands at 40, below its neutral point of 50, suggesting bearish momentum. Similarly, the MACD displayed a bearish crossover last Thursday, indicating further downside potential. However, a recovery above $3,730 could enable ETH to extend its rally.

Ripple Breaks Out, Eyes Further Gains

Ripple (XRP) broke above its symmetrical triangle pattern on Saturday, rallying 10%. The pattern, formed by converging trendlines since early December, has a bullish bias, with the breakout target calculated based on the distance between the first swing high and low. Despite encountering resistance at $2.56 on Sunday, XRP trades at $2.51 as of Monday.

A close above $2.56 could push XRP toward the pattern’s projected target of $3.63. However, investors should watch for potential profit-taking near the psychological $3.00 mark following a 17% rally.

The RSI indicator reads 59, signaling bullish momentum, while the MACD shows a bullish crossover, suggesting an upward trend.

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.