XRP closes below its daily support at $2.35, signaling the possibility of a deeper correction ahead.
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trade in red on Friday after correcting more than 5%, 10% and 2%, respectively, so far this week. BTC has slipped below the $100,000 key level, while ETH and XRP have faced rejection at their resistance levels, signaling that bears remain firmly in control and that a deeper correction may be underway.
Bitcoin price faced rejection at the 38.20% Fibonacci retracement level at $106,453 (drawn from the April 7 low of $74,508 to the all-time high of $126,299 set on October 6) on Monday and declined nearly 6% by Thursday. At the time of writing on Friday, BTC is trading down around $99,300.
If BTC continues its correction and closes below the daily support at $97,460, it could extend the decline toward the key psychological level at $95,000.
The Relative Strength Index (RSI) is 35, below its neutral level of 50, indicating strong bearish momentum. The Moving Average Convergence Divergence also showed a bearish crossover, signaling a sell and further supporting the bearish view.
On the other hand, if BTC recovers, it could extend the recovery toward the 38.20% Fibonacci retracement at $106,453.
Ethereum price faced rejection at the previous broken trendline around $3,592 on Monday and declined by nearly 10% over the next three days. At the time of writing on Friday, ETH hovers at around $3,200.
If ETH continues its pullback and closes below the $3,170 support level, it could extend the decline toward the daily support at $3,017.
Like Bitcoin, Ethereum’s RSI and MACD indicate bearish momentum gaining traction, signaling a deeper correction ahead.
However, if ETH recovers, it could extend the recovery toward the 38.20% Fibonacci retracement level at $3,592.
XRP price surged 6.75% on Monday, retesting the 50-day EMA at $2.53. However, it surrendered most of those gains on Tuesday after failing to break through that same resistance level. XRP again faced rejection from the 50-day EMA at $2.53 on Thursday and declined 2.74%, closing below the daily support at $2.35. At the time of writing on Friday, XRP trades down at around $2.30.
If XRP continues its correction, it could extend the decline toward the next daily support at $1.96.
Like Bitcoin and Ethereum, XRP’s RSI signals bearish momentum, while the MACD indicates indecision among traders.
On the other hand, if XRP recovers, it could extend the recovery toward the 50-day EMA at $2.53.
