xrp cryptocurrency price

BTC stumbles while ETH and XRP consolidate rapid gains

BTC stumbles while ETH and XRP consolidate rapid gains
Written by publisher team

  • Bitcoin price recorded a new marginal high, but the Coinbase IPO failed to extend the rally.
  • Ethereum has been successfully decoupled from BTC as new hard forks seek to cut gas fees.
  • Ripple’s decline appeared in the corrective ABC formation after hitting the psychologically important $2.

Coinbase’s Initial Public Offering (COIN) on Wednesday matched daily gains for all three major digital currencies, with Ethereum and Ripple closing with gains of more than 3%. By comparison, Bitcoin has gained less than 2%.

Bitcoin price cannot generate momentum to maintain new highs

The larger BTC price structure continues to take the form of a rising wedge pattern with another touch to the upper trendline needed to complete the pattern. It would be an extension of another 5% rally from the April 14 high. To complement the expectations of new marginal gains, an ABC corrective formation is revealed on the 12-hour chart.

BTC was unsuccessful in the first attempt to overcome the resistance at the 361.8% extension of the 2017-2018 bear market at $63,777, so it will remain a resistance if the price strengthens again.

The main resistance and control for the bearish outlook is the upper trend line of the wedge, currently at $67,880. If the price reverses, it will trigger a faster-than-expected decline which will not find support until the 12-hour 50 SMA crosses at $58,157 and the lower wedge trendline at $57,700.

Below the trend line awaits increasing support from the 12-hour 100 SMA at $55,787 followed by the April low at $55,400, before testing the March low at $50,305.

BTC / USD . 12 hour chart

A successful break of the upper wedge trendline will trigger a rally to the 461.8% extension of the 2017-2018 bear market at $80,540.

Ethereum price signs significant resistance in the short term

It has been 18 days since ETH broke out of a symmetrical triangle. The rally surpassed the February high at $2,041, the 161.8% Fibonacci extension of the 2018 bear market at $2,247, and just touched the 161.8% extension of the February retracement at $2,507 and the triangle movement target measured at $2,507. In the process, it posted its best 3-day gain of 17.73% since late January.

Once the Fibonacci block and the measured move target is cleared, ETH could rise to 261.8% from the February extension at $3,253. If volume continues to rise, a 261.8% extension of the 2018 bear market at $3,587 is the next target.

It is important to note that the daily Relative Strength Index (RSI) is not yet overbought.

ETH/USD 12-hour chart

ETH/USD 12-hour chart

A fortune reversal is always an investment possibility, and ETH speculators should identify the early April highs as the first level of support if a massive sell-off emerges. The next support level is located at the February high of $2,041. A failure there nullifies the bullish outlook and puts the price on course to test the 50-day simple moving average (SMA) at $1,835.

Twice the price of XRP is being bought by speculators

Every hike needs a fix, and that’s exactly what’s been happening at Ripple since the April 14th high. The cross-border remittance coin gained more than 200% from April 5th to April 14th, driven by bullish data.

The 3-day correction took the form of an ABC correction, touching the 38.2% expected correction level from the April high at $1.42. More weakness may emerge, but today’s bullish reversal from the retracement level indicates that there are enthusiastic speculators taking advantage of the decline. This will confirm the closing in the upper half of the daily bar.

Upside targets include $2.00, a 61.8% retracement of the 2018-20 bear market at $2.08, and a 78.6% retracement at $2.62 for aspiring speculators.

In the medium term, Ripple is expected to test an all-time high at $3.30.

XRP/USD 12-hour chart

A break of the 38.2% retracement level will weaken the bullish notion and delay a successful break of $2 in May or later.


About the author

publisher team