The cryptocurrency market is exhibiting signs of vulnerability as leading digital assets Bitcoin, Ethereum, and Ripple (XRP) grapple with downward momentum. Following a significant downturn last week, price predictions for these major cryptocurrencies are suggesting potential for further correction, according to market analysts.
Bitcoin Price Prediction: Downleg Following Close Below 200-day EMA
Bitcoin (BTC), the bellwether cryptocurrency, is currently hovering around $82,000 on Monday, after experiencing a nearly 15% drop in value last week. This price point comes after BTC broke below its 200-day Exponential Moving Average (EMA) at $85,754 on Sunday, a key technical indicator closely watched by traders. Analysis of Bitcoin’s daily chart reveals a bearish outlook, with the Relative Strength Index (RSI) at 36, signaling weakening momentum after rejecting from a neutral level.
The Moving Average Convergence Divergence (MACD) indicator further reinforces this bearish sentiment with a recent sell signal crossover. Should the downward trend persist, Bitcoin could potentially test its February 28 low of $78,258, with further support anticipated around $73,072. However, analysts also note a potential recovery point around $85,000 if buying pressure returns.
Ethereum Price Prediction: Momentum Indicator Display Weakness
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is also facing headwinds. After closing below the $2,125 support level on Sunday, Ethereum is currently trading around $2,051. This follows a nearly 20% decline last week, mirroring Bitcoin’s downward trajectory.
Momentum indicators for Ethereum are also flashing red, with the daily RSI at 35 and the MACD showing a bearish crossover, both suggesting continued weakness. Market observers are pointing to a potential further decline towards the $1,905 weekly support level. Conversely, a recovery above the $2,125 mark could pave the way for a retest of the $2,359 resistance level.
Ripple Price Prediction: Bears Flaunt Strength
Ripple (XRP) has been particularly impacted, trading around $2.17 on Monday after a sharp 27.25% crash last week. Having faced rejection at the $3 psychological level earlier in March, XRP is now navigating bearish territory. Technical analysis indicates potential for further decline, with the RSI at 42, below the neutral 50 level, and a bearish MACD crossover. Key support levels to watch for XRP include $1.96 and the February 3 low of $1.77. On the upside, a recovery could see XRP testing the $2.72 resistance level.
Market Sentiment:
Overall, momentum indicators across Bitcoin, Ethereum, and Ripple are reflecting weakness, suggesting that the cryptocurrency market may be poised for further correction in the short term. Traders and investors are closely monitoring these key support and resistance levels as they navigate the current market volatility. As always, the cryptocurrency market remains subject to rapid change, and investors are advised to conduct thorough research and exercise caution.
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