Bitcoin, Ethereum and XRP are indicating to their next potential breakout as they are all approaching major resistance. In addition, Bitcoin has been trading positively, up 5% over the last two days and now close to its 50-day EMA (exponential moving average). Ethereum has fared a lot better, bouncing back almost 10% over the same stretch and recently closing back above its 50-day EMA. XRP is near its 50-day EMA, with a possible upward advance if it closes clearly above this benchmark.
Bitcoin's Bullish Momentum
Bitcoin’s price has largely sustained its upward trajectory, trading further up in the green on Wednesday. Bitcoin has gained 5% over the past two days, showing that bullish momentum has returned to the market. The RSI, or Relative Strength Index, on Bitcoin’s daily chart is at 54. This is a reading well above the neutral level of 50 and adds to the bullish tone.
Bitcoin has now retraced all the way back to its 50-day EMA, located at $103,352. This area could prove to be an important inflection point in signaling where prices go from here in the near term. At this moment, bitcoin is riding high. In case it does manage to reclaim the 50-day EMA, a rally might be triggered, pushing it toward its all-time peak of $111,980 recorded on May 22.
If Bitcoin faces rejection, it will likely find it more difficult to remain above the 50-day EMA at $103,352. This unfortunate failure may be the catalyst for a much overdue correction. Under this extreme bearish scenario, price would at least drop further, possibly retesting its September 17th low Sunday morning low of $98,200. Any smart investor and trader would be wise to keep an eye on these important levels to predict where market direction may change.
Ethereum's Recovery and Resistance
Ethereum continues to show incredible resilience, jumping almost 10% in two days. This positive price action is a testament to increasing optimism by investors and traders about Ethereum’s long-term prospects. One key event is Ethereum’s recent close above its 50-day EMA, now at $2,425.
Ethereum price is now within an eye of reaching a firmly established resistance near $2,461. If broken, this level would represent an important milestone that signals a potential bull run coming. If there’s a successful break out above $2,461, the market would have further buying interest, with price potentially pushing Ethereum higher.
Traders and investors alike are keenly focused on how Ethereum performs at this resistance level. A longer-term move above $2,461 would further validate the bullish trajectory and usher in further capital inflows. If there is a failure to breach this level, it could result in some time of consolidation or even a possible retreat.
XRP's Potential Upward Move
XRP is now trading close to its 50-day EMA, which is located at $2.21. This level is key for where XRP could be potentially headed next. A strong close well above $2.21 would be bullish. This would suggest that XRP has the potential for a quick, sudden upward bounce in price.
After retesting and rebounding from its daily support at $1.96 on Monday, XRP was able to rally and gain 8.55%. This epic rebound is a testament to the natural strength and resiliency of XRP as an asset in the market. The relative strength index (RSI) on XRP’s daily chart circles its neutral mark of 50. This shift is evidence that the bullish momentum could be running out of steam.
Investors should watch XRP’s continued success in remaining above the 50-day EMA. And indeed, any successful breach will likely trigger a big humanitarian rally. Conversely, should it lose steam then we could be looking at a period of consolidation or even a possible retracement back down. The relationship between technical indicators and price action will be key to deciding XRP’s short-term direction.
