Bitcoin (BTC) is showing signs of consolidation above key support levels after a sharp correction last week. Ethereum (ETH) is consolidating sideways and is currently testing the bottom end of this consolidation range. At the same time, Ripple’s XRP has dropped below its 50-day Exponential Moving Average (EMA) support, raising chances of a deeper correction. These movements indicate a time of caution in the cryptocurrency space as investors assess possible paths forward.

Bitcoin Stabilizes After Brief Dip

Investors were worried Bitcoin price closed below its daily support level of $106,406 on Thursday. On the next day, the price recovered after a retest of its $102,893 50-day Exponential Moving Average (EMA). As late as over the weekend, Bitcoin’s price was still above $105,000. By Monday, it was able to hold firm at this level after closing below its critical support level last week.

Technical indicators provide mixed signals. Bitcoin’s daily Relative Strength Index (RSI) is trend neutral at about the 50 centerline. That indicates that traders are unsure and conflicted at the moment. The Moving Average Convergence Divergence (MACD) indicator created a bearish crossover. This is the signal to sell and is usually followed by a significant downward movement.

If Bitcoin manages to regain this key level, it may push the ongoing recovery to retest its daily resistance at $106,406. However, failure to close above this resistance level could lead to a decline, potentially retesting the key, psychologically important level at $100,000. These price fluctuations are what traders love to focus on to get a sense of short-term price action for Bitcoin.

Ethereum Tests Lower Consolidation Boundary

Price action on Thursday, ETH price found difficulty at support around the upper consolidation range at $2,724. This structural weakness led to a dramatic drop of 8.69% as of Saturday. The price did bounce back, up 1.22% the following day, providing a ray of hope to weary investors. Ethereum is trading right around the lower consolidation limit at $2,461. On the other hand, if it starts closing under this level then we might witness a correction approaching.

Additionally, the RSI on Ethereum’s daily chart just above 45, keeps ETH below the neutral line. This move to the downside is a harbinger of potent bearish momentum. So, it makes sense that this kind of selling pressure will be the main form of price pressure affecting Ethereum in the near term. Investors are closely watching if Ethereum can hold above the $2,461 support level to prevent more downside.

How Ethereum performs will be key, as Ethereum is extremely important to the overall cryptocurrency space. Additionally, its ability to maintain its position will have a huge impact on the mood of the investor towards altcoins. This, in turn, will greatly affect the new digital asset space’s health.

Ripple's XRP Faces Correction

Ripple’s XRP fell through its 50-day EMA support at $2.24, raising the likelihood of a deeper correction. This breach of a key support level has left many XRP holders worried. It’s an early, but promising sign of a big momentum shift. The 50-day EMA is a pretty important bellwether when it comes to an asset and the trend. When an asset loses this level, it is usually the catalyst for more downside to come.

Second, stablecoins are a novel dual privately issued and public payment instrument. No one person, group, or company can govern them, eliminating the necessity of a third party to facilitate a transaction. This last one is especially important given Ripple’s goal of using blockchain technology to make cross-border payments faster and cheaper. Recent and rapid developments around stablecoins may decide XRP’s fate one way or another. Moreover, rapid changes in the regulatory landscape could affect its adoption across the financial sector.

The market will continue to watch XRP closely. That remains to be seen – will it be able to get its footing back, or will the selling pressure continue? The next few days and weeks will be crucial in shaping the short-term future of Ripple.