Bitcoin (BTC) is leading the market into the weekend when the volumes of trade are expected to be lowest. Ethereum (ETH) and Ripple (XRP) prices have key obstacles to overcome to determine their next moves, with experts cautioning investors to remain vigilant lest they are caught in a fakeout.
Also Read: Trader says Bitcoin and crypto markets need ‘chaos’ for price growth
Bitcoin (BTC) price is coiling up for the next move, with analysts saying a recovery rally could turn out to be a bull trap in disguise. Meanwhile, momentum indicators such as the Relative Strength Index (RSI) point to an impending slump as momentum continues to fade. With this outlook, BTC could fall to the demand zone at $25,856, marking a 3% slump.
A break and close below the midline of the demand zone at $25,394 could extrapolate the losses, potentially sending Bitcoin price below $24,940.
The RSI is dropping while the Awesome Oscillator (AO) histograms are edging towards the negative zone, pointing to bears having their say. Furthermore, the RSI is about to activate a sell signal as it draws near the signal line (yellow band) a crossover to the downside could trigger seller momentum to drive Bitcoin price south.
BTC/USDT 1-day chart
On the other hand, increased buying pressure could send Bitcoin price north, overcoming the 100-day EMA at $27,316. In a highly bullish case, the gains could see BTC tag the $28,113 resistance level. The position of the AO in the positive territory shows bulls still have a fighting chance.
Also Read: Bitcoin Weekly Forecast: BTC recovery rally could be bull trap in disguise, here’s why
Ethereum price has outperformed Bitcoin, rising more than 5% to flip the $1,648 resistance level to a support floor. The move came after the RSI activated a bullish call as indicated in a previous article. With this momentum indicator still northbound and the AO soaked in green, ETH could continue rising.
A solid move above the 50-day EMA at $1,666 would clear the way for an extrapolation to the 100- and 200- day EMAs at $1,718 and $1,734 levels respectively before the largest altcoin by market capitalization can have a shot at the $1,861 range high.
ETH/USDT 1-day chart
On the flipside, early profit taking could cut the rally short, with the ensuing selling pressure likely to cut down all the ground covered. This could see Ethereum price fall 6% to test the $1,552 support level, or worse, extend to collect the sell-side liquidity residing underneath.
Also Read: Ethereum Futures ETF to roll out by first week of October: Bloomberg ETF analyst
Ripple (XRP) price is at a crossroads, confronting the mean threshold of a bearish order block (supply zone) at $0.5337. Breaking and closing above it will confirm a continuation, while a rejection could steer a downtrend.
From a technical standpoint, the odds favor the upside, with the RSI inclined north, at 60, with more ground to cover before reaching the overbought territory. Increased buying pressure could therefore see Ripple price tag the $0.6098 resistance level, last tested around mid-August.
XRP/USDT 1-day chart
Conversely, a rejection from $0.5337 could send Ripple price out from below the supply zone at $0.5145, or lower to tag the $0.4622 level. In a dire case, the downtrend could send XRP to the range low at $0.4191. This would constitute a 20% slump.
Also Read: Ripple and Coinbase lead the big fight as US crypto firms advocate for regulatory overhaul
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.