xrp crypto value

Big crypto needs to prove itself as downside risk multiplies

XRP heads to new yearly highs while the others take a backseat
Written by publisher team

  • Bitcoin price closed the week down -2.9% but remained well above the 50-week simple moving average (SMA).
  • Ethereum price closed the week -7.85% lower after rising briefly.
  • XRP price closed the week -8.62% lower, below the tactically important $0.650 level.

Bitcoin price is now down -4.44% for the month as it holds the official support by the 12-month simple moving average (SMA). Ethereum price is down -7.75% for the month, but it barely holds the upward trend line for 2020. Meanwhile, XRP is down -10.24% this month while moving in a range framed by the inverted head and shoulders neckline and the 78.6% Fibonacci retracement level.

Bitcoin price support aligns, but can hold

Beginning in June, bitcoin price was successfully testing the credibility of the 12-month SMA support, currently at $32,135. The 12-month SMA merges with the head and shoulders neckline that runs from January 2021 through May 2021, creating a massive support for weakness during the month.

Consolidating support around the 12-month SMA is the 50-week SMA at $31,906 as Bitcoin price has not closed below the tactically important SMA on a weekly basis since the corrective operation began in April.

However, on July 8, Bitcoin price triggered a rising wedge pattern that took control of BTC from the June 22 low at $28,800, increasing the potential for risk bias to the downside.

The measured movement of the rising wedge pattern is at 27%, which anticipates a final Bitcoin price drop at $25,000 if the crash gains momentum. A drop of this magnitude will close out a permanent bullish outlook for Bitcoin and, most importantly, turn the resilient support around $30K into an imposing resistance level for any attempts to bounce off the measured move target of $25K.

Bitcoin price’s decline to the measured move target will confirm the breakdown of the larger head and shoulders pattern, which was first launched on June 22, and replace the BTC support that was called by the 61.8% Fibonacci retracement level of the 2020-2021 high at $27175. .

Hence, to avoid a bearish outcome, bitcoin price needs to hold the 12-month SMA at $32,135, the 50-week simple moving average at $31,906 and the head and shoulders neckline at $30,640 on the close. weekly.

BTC/USD weekly chart

At the moment, in order for bitcoin price to record a daily close above the upper wedge trendline and the associated VWAP from October 21 at $37,690, BTC is expected to continue to fluctuate in the range made since the May 19 low.

Here, FXStreet analysts are assessing which direction Bitcoin could head next as it appears to be linked to a recovery.

Ethereum price surfs important support as cryptocurrency market fluctuates widely

On July 8, Ethereum price collapsed below the lower trend line of a rising wedge pattern at $2,330, dissolving the price structure that has guided ETH since the low of the June 22 doji candle.

Since the crash, Ethereum price has been surfing along the support given from the February high at $2,041 and boosted by the 200-day SMA at $2,030 and the 2020 ascending trend line now at $1,970.

A daily close below $1970 will immediately tilt Ethereum’s risk to the downside and start a drop to the 61.8% Fibonacci retracement level of the 2020-2021 advance at $1,730. If Ethereum price perfects a weekly close below $1,717, it will trigger a larger descending triangle pattern (highlighted in blue) and announce the possibility of an additional 40% decrease based on the measured move of the descending triangle. More specifically, a 40% drop from the triangle breakout would equate to a price below $1,000.

Ethereum’s 40% price movement will be challenged by the 12-month SMA at $1,420, the 2018 high at $1,419 and the 50-week simple moving average at $1,386. In fact, ETH should struggle to extend the sell-off beyond those levels, which marks a sharp 34% rally below the current price and a 19% drop from $1,717.

ETH/USD weekly chart

ETH/USD weekly chart

A daily close above the 50-day SMA at $2,341 would invalidate the short-term bearish outlook, but investors should not overlook the upper trendline of the descending triangle, which is now at $2,570. You will put pressure on the price, limiting the possibility of an uptrend.

Here, FXStreet analysts are assessing which direction ETH could go next as it looks like a rally is expected.

XRP Price Expands Trading Range, But Still Without Actionable Evidence

Unlike Bitcoin and Ethereum, XRP price triggered a slight bullish wedge pattern much sooner, on July 1, before moving to consolidation along the all-important $0.650 price level, which coincides with the May 23 low. The reinforcement broke out on July 8. Ripple is now unable to recover $0.65, thus extending the trading range, with support currently at the 50-week simple moving average at $0.566 or the 78.6% retracement level at $0.555.

The measured wedge move is around 30%, which indicates that the XRP price will push through the Fibonacci level and the June low at $0.512 before settling at $0.477. To reach the target price, Ripple must fall 24% below the current price level.

XRP/USD weekly chart

XRP/USD weekly chart

The best that Ripple market players can hope for at this point is that the price of XRP will swing around $0.650, and only a daily close above $0.770 would disrupt the bearish expectations shown on Ripple’s charts for different time frames.

In a cryptocurrency market characterized by fluctuating commitment and an intensification of risks to the downside, market speculators must be patient and allow digital coins to prove themselves before making final trading decisions. It is important to remember that investors have nothing to prove to the markets; Instead, markets must constantly prove themselves.

Here, FXStreet analysts are assessing which direction Ripple could go next as it looks like a rally is expected.


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