XRP fails to close above its key resistance level at $2.23, increasing the risk of a short-term pullback.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are showing signs of weakness mid-week as bullish momentum continues to fade. BTC extends its decline to trade below $106,000, while ETH and XRP slip below their key support levels, raising concerns of a deeper correction on the horizon.
Bitcoin price rose sharply by 7.32% last week, closing above $108,000. However, it faced a correction on Monday and continued its decline, closing below $106,000 the following day. At the time of writing, it hovers at around $106,100.
If BTC continues to face a pullback and closes below its 50-day Exponential Moving Average (EMA) at $104,245, it could extend the decline toward its psychological level of $100,000.
The Relative Strength Index (RSI) on the daily chart reads 51 and is hovering around its neutral level of 50, indicating indecisiveness among traders. For the bearish momentum to be sustained, the RSI must move below its neutral level. The Moving Average Convergence Divergence (MACD) hints at a bearish crossover (the MACD line is close to crossing below the signal line), which, if completed, would give a sell signal.
However, if the 50-day EMA level at $104,245 remains strong as support, BTC could extend its rally toward the May 22 all-time high at $111,980.
Ethereum price failed to find support around its daily level of $2,461 earlier this week and closed below its 50-day EMA at $2,428 on Tuesday. At the time of writing on Wednesday, it hovers around $2,428.
If ETH continues its correction, it could extend the decline to retest its June 22 low of $2,111.
The RSI on the daily chart reads 47, below its neutral level of 50, indicating that bearish momentum is gaining traction. The MACD indicator also coils against each other, indicating indecisiveness among traders.
On the other hand, if ETH recovers and closes above the $2,461 level, it could extend the rally toward its next daily resistance level at $2,724.
XRP price failed to close above its daily resistance level at $2.23 on Monday and declined nearly 3% the next day. At the time of writing on Wednesday, it hovers at around $2.18.
If XRP continues its correction, it could extend the decline to retest its next daily support at $1.96.
The RSI on the daily chart hovers around its neutral level of 50, indicating indecisiveness among traders. For the bearish momentum to be sustained, the RSI must move below its neutral level.
Conversely, if XRP recovers and closes above the daily resistance at $2.23, it could extend the rally toward its May 23 high of $2.47.
