Ripple’s XRP fails to break above the 50-day EMA at $2.24, facing increased selling pressure and downside risk.
Bitcoin (BTC) price is hovering above the key support level on Friday; a breach below this level could trigger a sharp decline. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and stabilized around their crucial levels, with a failure below their support levels indicating a potential correction ahead.
Traders remain cautious as President Donald Trump is expected to decide within two weeks whether the US will intervene in the ongoing Israel-Iran conflict, a move that could decide the risk sentiment toward crypto markets.
Bitcoin price drew liquidity from its Fair Value Gap (FVG) around $108,064 on Monday and declined by 2.1% the following day. BTC has retested and found support multiple times around the 50-day Exponential Moving Average (EMA) at approximately $103,100, highlighting its strength as dynamic support. At the time of writing on Friday, it trades at around $104,500.
If BTC continues its correction and closes below the 50-day EMA at $103,100 on a daily basis, it could extend the decline to retest its key psychologically important level at $100,000.
The Relative Strength Index (RSI) momentum indicator on the daily chart reads 47, below its neutral level of 50, indicating that bearish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) indicator displayed a bearish crossover last week. It also shows rising red histogram bars below its neutral level, indicating bearish momentum and giving credence to the downward trend.
However, if BTC closes above its FVG level at $108,064, it could extend the recovery toward retesting its May 22 all-time high of $111,980.
Ethereum price retested and found support around its 50-day EMA at $2,441 on Wednesday, consolidating at this level the following day. This level coincides with the lower consolidation boundary of $2,461, making it a key support zone. At the time of writing on Friday, it hovers at around $2,514.
If ETH closes below the 50-day EMA at $2,441, it could extend the decline to retest its next support level at $2,000.
The RSI on the daily chart momentum indicator reads 48, below its neutral level of 50, indicating that bearish momentum is gaining traction. The MACD indicator displayed a bearish crossover last week. It also shows rising red histogram bars below its neutral level, indicating bearish momentum and giving credence to the downward trend.
On the contrary, if ETH finds support around its 50-day EMA at $2,441 and recovers, it could extend the recovery to retest its upper consolidation boundary at $2,724.
XRP price attempted to close above the 50-day EMA at $2.24 on Monday but failed, subsequently declining by 3.53% the following day and consolidating around the $2.15 level until Thursday. At the time of writing on Friday, it hovers around $2.16.
If XRP faces a correction, it could extend the decline to retest its next daily support level at $1.96.
The RSI on the daily chart reads 44, below its neutral level and points downward, indicating strong bearish momentum. Moreover, the MACD indicator on the daily chart displayed a bearish crossover, signaling a sell and indicating a downward trend.
However, if XRP recovers and closes above the 50-day EMA at $2.24, it could extend the recovery toward the May 23 high of $2.47.
