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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Why could BTC, ETH and XRP recovery be short-lived?
Bitcoin (BTC) price hovers around $104,000 on Friday after bouncing off from its 50-day Exponential Moving Average (EMA) of around 98,800 earlier this week. Ethereum (ETH) and Ripple (XRP) approach key resistance levels; if rejected, they could lead to a correction ahead.
Bitcoin price is poised for a down leg if it closes below the 50-day EMA
Bitcoin price found support around its 50-day Exponential Moving Average (EMA) at $98,845 on Monday and rose 2.69% on Thursday, closing above $104,700 on that day. At the time of writing on Friday, it hovers around $104,100.
If BTC breaks below $100,000 and closes below the 50-day EMA on a daily basis, it could extend the decline and test its next key support around $90,000.
The Relative Strength Index (RSI) indicator on the daily chart reads 57, above its neutral level of 50, but points downwards, indicating signs of weakness in bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator converges, indicating indecisiveness among traders. If the MACD flips to a bearish crossover on a daily basis, it would give a sell signal and suggest a downtrend.
However, if BTC continues recovering, it could retest its January 20 all-time high of $109,588.
Ethereum price faces rejection around its descending trendline
Ethereum price bounced off from its psychological importance level of $3,000 on Monday and rose 6.33% until Thursday. At the time of writing on Friday, it faces rejection near its descending trendline and trades around $3,231.
If the descending trendline holds as resistance, it could extend the decline to retest its psychological importance level of $3,000. A successful close below this level would extend an additional decline to test its next daily support at 2,810.
The RSI on the daily chart reads 46, after rejecting from its neutral level of 50 and points downwards, indicating bearish momentum. Like Bitcoin, the MACD indicators also converge, suggesting indecisiveness among traders.
Conversely, if ETH breaks above the descending trendline, it could extend the recovery to test its daily resistance level at $3,730.
Ripple price is primed for a correction if it closes below its ascending trendline
Ripple price bounced off its ascending trendline (drawn by connecting multiple lows since early January) around $2.72 on Monday and rose 2.25% until Thursday. At the time of writing on Friday, it trades slightly down around $3.07.
Ripple price had a strong performance in January, outperforming popular cryptocurrencies like Bitcoin and Ethereum.
If Ripple breaks below the ascending trendline and closes below $2.72, it could extend the decline to test its next daily support at $1.96.
The RSI indicator reads 59, above its neutral value of 50, and points downwards after being rejected from its overbought level of 70, indicating weakness in bullish momentum. Additionally, the MACD flipped a bearish crossover on Sunday, giving sell signals and suggesting a downtrend.
Source: fxstreet