- Bitcoin price could make a 5% climb to $27,771 if it overcomes resistance confluence between 50- and 200-EMA at 26,948.
- Ethereum price could breach the $1,648 barricade if rising momentum activates the pending bullish call.
- Ripple price’s recovery rally threatened by massive seller accumulation within the $0.5145 and $0.5536 order block.
Bitcoin (BTC) price is trying to lead the rest of the market i nto recovery. However, it faces a key obstacle, same case for Ethereum (ETH) and Ripple (XRP) positioning the top three cryptocurrencies in a muddle.
Bitcoin price tests key confluence hurdle
Bitcoin (BTC) price is working out a recovery, but the upside potential remains limited by a descending trend line from a big picture point of view. More closely, the king of crypto is trapped under the foothold of the three Exponential Moving Averages (EMA), making it a Catch-22 moment or complication for investors.
In today’s trading session, Bitcoin price climbed almost 3%, escaping above the trendline before a strong rejection from the resistance confluence presented by the 50- and 200-day EMA at $26,948.
The overall outlook of the Relative Strength Index (RSI) shows that while momentum appears to be rising, it remains rather weak. The red histogram bars of the Awesome Oscillator paint the same picture, moving narrowly above the midline. This increases the odds for Bitcoin price falling.
However, bulls still have a chance to push north, considering the RSI is tipping up and the AO is positive. The onus, therefore, is on bulls to increase their buying pressure, with a break and close above the 100-day EMA at $27,330 confirming the breakout.
In a highly bullish case, Bitcoin price could extend above the $27,771 resistance level, last tested in late August.
BTC/USDT 1-day chart
Conversely, traders are likely to start cashing in after Bitcoin price’s failed attempt at a breakout. The ensuing selling pressure could send BTC below the $26,000 psychological level to test the demand zone at around $25,856. A break and close below its mean threshold at $25,527 will confirm the downtrend, likely leading BTC to the September 11 lows at $24,899. This would constitute a 5% slump from current levels.
Ethereum price has a pending bullish call that needs activation
Ethereum (ETH) price is in an upwards spiral, with the current move, if sustained, likely to send ETH past the $1,648 resistance level. This roadblock has been in play since the onset of the month. If bulls activate the pending bullish call indicated by the RSI attempting to cross above the signal line (yellow band), the Proof-of-Stake (PoS) token could finally break through. A solid move above the 50-day EMA at $1,666 would confirm the breakout.
The green shade of the AO supports this outlook as it points to bullish dominance over the bears.
ETH/USDT 1-day chart
On the other hand, a rejection from the $1,648 resistance level could send Ethereum price south, potentially tagging the support floor at $1,551. In the dire case, the losses could extrapolate for a quick liquidity sweep, with the daily chart showing a bit of sell-side liquidity residing underneath.
Ripple price faces massive seller accumulation
Ripple (XRP) price recovery could be overpowered by seller momentum from the supply zone between $0.5536 and $0.5145. This order block is populated by strong sellers, with the 100-, 200, and 50-day EMAs at $0.5376, $0.5193, and $0.5278 all converging within it. As such, it is likely that XRP could fall, potentially going as low as the $0.4622 support level. In the dire case, the fall could extend to the support floor at $0.4191, with the move denoting a 15% fall from current levels.
The RSI is inclined south, suggesting falling momentum, invigorated by the red histogram bars of the AO. This tips the odds further in favor of the bears.
XRP/USDT 1-day chart
On the flipside, sidelined investors could inspire a move north, sending Ripple price into the supply zone. A break and close above the midline of this order block, coinciding with the 50-day EMA at $0.5278 would confirm the climb. In a highly bullish case, XRP could shatter the upper boundary of the order block at $0.5536, clearing the path for a continuation to the $0.6098 level. Such a move would denote 20% ascension.
What is Ripple?
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
What is XRP?
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
What is XRPL?
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
What blockchain technology does XRP use?
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.