- Bitcoin price breaks down, exposing BTC to the risk of sliding below the key $24,500 June lows.
- Ethereum price could fall 10% to the $1,400 range if BTC price shows weakness below $25,586.
- Ripple price eyes continued downtrend as XRP tests the descending parallel channel at $0.4600.
Bitcoin (BTC) price indicates signs of an impending slump after losing a critical support level. The gloom has extended to Ethereum (ETH) and Ripple (XRP) prices, as the broader market downtrend becomes clearer now more than ever before.
Also Read: Bitcoin price recovery bound to be delayed as Texas power crisis threatens miner reserves.
Bitcoin price faces risks of a downtrend
Bitcoin (BTC) price is down almost 3% over the last day, against a 99% increase in 24-hour trading volume. However, the odds favor the downside, with momentum indicators showing that buying pressure continues to reduce.
Furthermore, a death cross hangs over Bitcoin price, indicated by the 50-day Moving Average (MA) almost crossing below the 200-day MA. A death cross pattern occurs when the short-term moving average of an asset crosses below its long-term moving average.
With the above, Bitcoin price could fall toward $24,500. This level is of particular significance as it marks the June 2023 lows and the last lowest high. Therefore, a solid break below it could extend the downtrend, possibly sending BTC to tag the $23,600 range, levels last tested on May 13. In a dire case, the downtrend could continue to $21,300, levels last seen in March. Such a move would constitute a 15% downswing from current levels.
BTC/USDT 1-day chart
On the other hand, if the $24,500 support level holds, Bitcoin price could have a chance at a recovery. Increased buying pressure above this level could change the narrative for Bitcoin, sending BTC north to reclaim the $25,586 support level.
In a highly bullish case, the king of crypto could extend to breach the resistance confluence between the 50- and 200-MA at around $27,616 before a neck higher possible toward the $28,838 hurdle.
In highly ambitious cases, Bitcoin price could shatter past the $30,000 psychological level before a test of the range highs above $31,804.
The bullish convergence between Bitcoin price and two momentum indicators, RSI and MACD, adds weight to prospects of a recovery. This is indicated by BTC price recording lower lows which are not mirrored by either RSI or MACD.
Also Read: Bitcoin Weekly Forecast: BTC could revisit $21,000 as sell signals multiply ahead of US CPI.
Ethereum price risks 10% fall
Ethereum price (ETH) is $1,575 at press time, sliding south with a forecasted 10% slump to $1,407 if Bitcoin price tags $24,500.
ETH/USDT 1-day chart
Conversely, a recovery in Bitcoin price, would influence Ethereum price to correct north, possibly converting the $1,575 resistance level back to a support floor before breaching past $1,800 to tag the psychological $2,000 level.
Also Read: Grayscale Ethereum Trust discount shrinks to lowest level in a year, traders await spot ETH ETF approval.
Ripple price to fall back to the confines of a bearish pattern
Ripple (XRP) price tests the upper boundary of a descending parallel channel, with momentum indicators (RSI and AO) showing a possible breakdown back into the foothold of this bearish technical formation.
A decisive flip of the $0.4600 support level back into a resistance would increase the odds for a downtrend, confirmed once XRP tests the midline of the descending parallel channel at $0.4191. In the dire case, the payments token could extend lower to the channel’s base at $0.3562, levels last seen in March.
XRP/USDT 1-day chart
A hold at the upper channel line and resurgence by the bulls, however, could reverse the trend for Ripple price, with a likely breach of the 200-day Exponential Moving Average (EMA) hurdle at $0.5224 before XRP can confront the resistance confluence between the 50- and 100-day EMA at around the $0.5505 and $0.5510 range. This would indicate a 15% ascent above current levels.
Also Read: XRP price reverses all gains since Judge Torres ruling as Ripple holders sentiment turns negative.
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.