As the cryptocurrency market continues to navigate turbulent waters, Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are experiencing significant pressure on their key support levels. A sustained close below these critical thresholds could indicate further declines for these major cryptocurrencies.
Bitcoin is currently hovering around its vital support level, having recently retested its 200-day Exponential Moving Average (EMA) at $59,904. This level provided support after BTC faced rejection at the psychological mark of $66,000 earlier in the week. As of Friday, Bitcoin trades slightly above this level at around $61,000.
However, if Bitcoin fails to maintain this support and falls below it, it may resume a downtrend, raising concerns among investors. The current market sentiment surrounding Bitcoin is cautious, with traders closely monitoring any signs of weakness.
Ethereum is exhibiting troubling signs, having closed below its critical support level of $2,461 earlier this week. The price fell below its 50-day EMA at $2,569 and has since experienced a decline of over 9%, trading at approximately $2,300 as of Friday.
Momentum indicators, particularly the Moving Average Convergence Divergence (MACD), indicate weakness. A bearish crossover occurred on Wednesday when the MACD line crossed below the signal line, triggering a sell signal. The rising red histogram bars below the neutral line suggest potential downward momentum for Ethereum.
Moreover, the Relative Strength Index (RSI) sits at 40, below the neutral level of 50, signaling strong bearish momentum. Should the $2,461 level act as resistance, Ethereum may continue to decline, potentially retesting its September 6 low of $2,155.
Ripple has also shown signs of bearish momentum, having been rejected from its July 31 high of $0.657 and declining over 18% in the subsequent four days. XRP closed below its 200-day EMA at $0.555 and its daily support level at $0.545, breaking below an ascending trendline. As of Friday, Ripple is trading slightly above these levels at around $0.532.
If the previously significant levels—200-day EMA at $0.555, daily support at $0.544, and the broken ascending trendline—continue to act as resistance, XRP may experience further declines, potentially retesting its August 5 low of $0.431.Momentum indicators for Ripple, similar to Bitcoin and Ethereum, also suggest bearish biases, indicating that the downward trend could persist.
The current state of Bitcoin, Ethereum, and Ripple reflects the broader challenges faced by the cryptocurrency market. With key support levels being tested and momentum indicators signaling weakness, traders and investors need to exercise caution. The potential for further declines remains, making it essential to monitor market conditions closely as these cryptocurrencies navigate this turbulent phase.
October 2024, Cryptoniteuae