Bitcoin

The market is certainly getting pressured by bears, as we covered in our previous crypto market prediction. They overtook bulls’ attempts to push assets to a recovery rally, but things remain at a pivotal point: Bitcoin is holding above its nearest support with weakening momentum, Ethereum continues to struggle with sustaining bids above key resistance zones as liquidity thins, and XRP is facing sharper downside risk given its inability to break the local trendline.

XRP pressured by trendline

The result of XRP’s latest test of a critical resistance level may determine the direction of its next significant move. XRP is currently battling a declining trendline that has repelled multiple rallies since late July, with the price hovering around $3.06. The aggressive target of $5 could once again be on the table, if a confirmed breakout here opens the door to a more extensive bullish expansion.

After falling below $2.80, XRP has been gradually hitting higher lows on the daily chart, demonstrating the tenacity of buyers at important support zones. Deeper corrections are kept at bay by the 200-day EMA around $2.55, and the 50-day EMA around $2.94, which remain strong backstops.

XRP/USDT Chart by TradingView

With the help of growing trading volume (more than 66 million trades per day), and a marginally strengthening RSI at 57, which indicates that the market is not yet in overbought territory, momentum is gradually moving upward. The crucial conflict is taking place between $3.00 and $3.20.

The trajectory toward $3.50, and eventually $5.00, becomes more feasible if bulls are able to break above this range. It would take both technical confirmation and consistent buying pressure — possibly from institutional players or rekindled consumer interest in altcoins — for such a move to occur. On the other hand, another pullback would probably occur if the current resistance is not overcome.

A decline below these levels would expose XRP to a more severe correction toward $2.55. The key support levels are $2.90 and $2.79. XRP is currently at a critical juncture. It will be clear from the upcoming trading sessions whether it breaks free and moves toward a $5 target or keeps consolidating under resistance. It is important for investors to anticipate increased volatility as the market tests these crucial levels.

Ethereum can regain it

Ethereum is displaying fresh strength as it approaches the crucial $5,000 threshold, which has not been reached since the previous cycle’s highs. With its strong uptrend and current price of $4,561, ETH appears to be poised for a sustained push toward new heights.

Ethereum’s tenacity is demonstrated by the daily chart. With strong momentum, ETH has now broken higher after consolidating in $4,200-$4,400 territory. In order to maintain ETH’s bullish structure, the 50-day EMA ($4,209) remains a dynamic support, and the 100-day EMA ($3,682) and 200-day EMA ($3,249) stay firmly below. Moving averages in alignment support the strength of the trend and indicate that dips are being aggressively bought.

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Recent inflows suggest that investors are positioning themselves ahead of Ethereum’s next significant move, as volume has stabilized at healthy levels. ETH is neither overbought nor exhausted, according to the RSI at 59, which suggests that there is still potential for more upside before overheated conditions arise.

The immediate resistance, a significant psychological and technical barrier, is located close to $4,800. Ethereum’s journey toward $5,000, where momentum traders and institutions may increase buying pressure, could be sparked by a clear breakout above this level.

With medium-term targets extending toward $5,500-$6,000, ETH may enter a new price discovery phase once $5,000 is breached. To keep up its positive momentum, ETH needs to stay above $4,200 on the downside. The wider trend is still in place as long as ETH trades above its 200-day EMA, but failure to do so might lead to a retest of the $3,800 zone.

Bitcoin breaks in

Although Bitcoin is now trading at $115,207, there are indications that the rally may stall before hitting the resistance level of $115,000-$116,000. Even though Bitcoin has demonstrated resilience in recent weeks, it has not gained the kind of traction required to advance toward the psychological level of $120,000.

This slowdown is evident in the daily chart. Bitcoin has been consistently under selling pressure as it has attempted to recover above $116,000. The 100-day EMA at $112,285, and the 50-day EMA at $114551, continue to offer support, but the absence of follow-through purchases suggests that traders are hesitating.

In the short term, Bitcoin has some stability because the 200-day EMA at $111,035 is still functioning as a deeper support level. This caution is reinforced by volume trends. Volume has decreased in recent trading sessions, indicating that buyers are running out of options, and that significant institutional inflows have not yet resumed.

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Although momentum is still weak, indicating indecision rather than confidence, the RSI at 57 indicates that Bitcoin is not overbought. It is likely that Bitcoin will retrace toward $112,000, and possibly $110,000, if it cannot break decisively above that level. A confirmed breakout above $116,000 might pave the way for a move toward $120,000, but there is little chance that it will be sustained in the absence of fresh market inflows.

The current setup advises investors to exercise caution. Although the market is indicating that the road to $120,000 will not be easy, Bitcoin’s overall upward trend will continue as long as the price stays above the 200-day EMA. Short term, Bitcoin might be capped below $115,000, so it is important to keep an eye on this area for rejection or an infrequent breakout attempt.

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