Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC and XRP hover near key supports while ETH consolidates after record highs

Bitcoin faces rejection from trendline pullback resistance

Bitcoin price found support around the 100-day Exponential Moving Average (EMA) at $110,865 on Friday and rallied 3.94%. However, it found rejection from its previously broken trendline the next day and declined 3.42% until Sunday. At the time of writing on Monday, it trades slightly down at around $112,852.

If BTC closes below the 100-day EMA at $110,865 on a daily basis, it could extend the decline toward its next support level at $103,701, its 200-day EMA.

The Relative Strength Index (RSI) on the daily chart reads 43 after facing rejection from its neutral level of 50 on Friday, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) also showed a bearish crossover last week and supports the bearish thesis.

BTC/USDT daily chart

However, if BTC finds support around the 100-day EMA at $110,865 and recovers, it could extend the rally toward its key resistance at $116,000.

Ethereum consolidates after a record high of $4,956

Ethereum price found support around the daily level of $4,232 on Thursday and rallied 14.36% the next day. ETH price extended the gains, reaching a new all-time high of $4,956 on Sunday. At the time of writing on Monday, it hovers around $4,747.

If ETH continues its upward trend, it could extend the gains to set a record high above $5,000.

The RSI on the daily chart reads 64, above the neutral level of 50, indicating strong bullish momentum. Moreover, the MACD indicator also showed a bullish crossover on Saturday, further supporting the bullish thesis.

ETH/USDT daily chart

On the other hand, if ETH faces a pullback, it could extend the correction toward its daily level at $4,488.

XRP nears key support zone

XRP price found support around its 50% retracement level at $2.78 on Friday and rallied 7.80%, closing above its 61.8% Fibonacci retracement level at $2.99. XRP faced a slight decline in the next two days, finding support around the $2.99 level. At the time of writing on Monday, it is near this support zone.

If XRP finds support around the $2.99 level and recovers, it could extend the rally toward its next daily resistance at $3.40.

The RSI on the daily chart hovers around the neutral level of 50, indicating indecisiveness among traders. The MACD lines are also converging, supporting the indecisiveness thesis.

XRP/USDT daily chart

Conversely, if XRP closes below its $2.99 support, it could extend the decline toward its next support at $2.78.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.