- Bitcoin is likely to revisit the 200 SMA support before a significant reversal comes into play.
- Ethereum’s downside eyes $480 mostly if support at the 100 SMA and $500 tumbles.
- Ripple fights for support above $0.5 and the 50 SMA after rejection at the critical $0.6 resistance level.
The cryptocurrency market is still painted in red nearly a day after the selloff was triggered by investors taking profits. Withdrawal services for cryptocurrencies and digital assets on OKEx exchange resumed on Thursday. The massive declines, especially for Bitcoin, have been attributed to investors removing funds from the platform.
Bitcoin is struggling with sustaining the price above $17,000, while Ethereum seems poised for losses under $500. On the other hand, Ripple managed to recover above $0.5 and is trading at $0.52 at the time of writing. Significantly few coins are trading in the green on Friday, and they include selected altcoins such as Aave (AAVE), Yearn.Finance (YFI) and Kusama (KSM).
Bitcoin resumes breakdown towards $15,750
Bitcoin recovered from the dip to $16,200 and reclaimed the ground above $17,000. However, the bullish momentum was not strong enough to overcome the seller congestion at the 100 SMA. A rejection came into the picture, forcing the flagship cryptocurrency back into the $16,000s territory.
At the time of writing, BTC/USD is trading at $16,728 amid a bearish moment that has intensified. If Bitcoin does not close the day above $17,000 and perhaps the 100 Simple Moving Average, more losses are likely to come into the picture. The bearish leg might stretch to the 200 SMA at $15,750 before a reversal occurs.
BTC/USD 4-hour chart
On the contrary, the bearish outlook will be abandoned if the bellwether cryptocurrency settles above the 100 SMA. Here, bulls will have a chance to focus on lifting the price to levels above $18,000 and probably the 50 SMA at $18,300.
Ethereum is on the verge of a breakdown under $500
Ethereum is like an unstable atom as it holds above $500. Recovery from the dip to $480 failed to make progress above $520. Ether suffered another rejection at the resistance level, forcing buyers to seek refuge at the 100 SMA, marginally above $500.
The smart-contract giant must hold above $500 if not the 100 SMA to avoid triggering massive losses. Support is still anticipated at $480, but if supply increases for Ethereum, a significant downtrend might occur.
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ETH/USD 4-hour chart
On the flip side, bulls will avoid the potential breakdown if they Ethereum held above $500 as well as the 100 SMA. This will allow them to shift their focus from playing defends to breaking past the critical hurdle at $520.
Ripple’s declines seem unstoppable
The cross-border token renewed the uptrend but only slightly after the recent sharp drop to $0.45. Defending the 50 SMA support on the 4-hour chart played a critical role in controlling the breakdown. The recovery that ensued stalled under $0.6, leading to the ongoing battle to stay above $0.5.
XRP will likely continue with the downtrend, especially if the support levels at the 50 SMA and $0.5 cave to the selling pressure. For now, the least resistance path is downwards, as reinforced by the Relative Strength Index’s slide under the midline.
Trading below the 50 SMA could call for more sell orders. An increase in supply for XRP might see the cross-border token embark on a massive gain-trimming exercise. Other key support levels to keep in mind include $0.45, the 100 SMA at $0.38, and the 200 SMA at $0.31.
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XRP/USD 4-hour chart
On the upside, defending support at $0.5 or the 50 SMA might invalidate the bearish narrative. If Ripple assumes stability, bulls will have ample time to focus on increasing the demand, which might help elevate the token above the resistance envisaged at $0.6 and $0.7.