- Bitcoin price is poised for a major surge and could reach the $30,400 level as volatility falls and open interest increases to boost the market.
- Ethereum price could break the $1,891 barrier and potentially reach the $1,921 resistance level before falling back.
- Ripple price will fall 15% unless the bulls use the 200-day EMA at $0.5766 for a quick reversal.
Bitcoin (BTC) price is moving lower after breaking through periods of prolonged consolidation. The move comes as traders continue to take long and short positions and open contracts around BTC. However, as open interest increases, the market remains volatile and the low volatility leaves the market open to manipulation.
Also Read: Bitcoin Volatility Signals Impulsive Push, Bulls Are Paying a Heavy Price to Be a Part of the Action.
Bitcoin price surges north for a big move
Bitcoin (BTC) broke out of its equilibrium consolidation and plunged below the 100-day EMA (Exponential Moving Average) of $29,339. The largest cryptocurrency by market cap could continue falling and hit the $28,758 support level ahead of a potential drop.
The resulting demand pressure could see bitcoin price break above the EMAs and move above the downtrend line. Such a move would pave the way for a possible break of the $30,079 resistance level and, in a very bullish case, mark the $30,441 resistance level. Such a move would represent a 5% increase.
BTC/USDT 12 hour chart
Conversely, if selling pressure increases, bitcoin price could drop below the immediate support at $28,758. Such a move would leave BTC subject to a possible crash down to the $27,000 area or, at worst, a crash down to the $26,3000 area. Such a move would mark a 10% drop from current levels.
The Relative Strength Index (RSI) position below 50 lends more credence to this bearish outlook and the Awesome Oscillator (AO) histograms are in negative territory.
Also Read: Bitcoin Volatility Signals Impulsive Push, Bulls Are Paying a Heavy Price to Be a Part of the Action.
Ethereum price surges higher as open interest surges
Ethereum (ETH) price, like BTC, is in a downtrend, but this could be corrected soon as open interest rises. With more money flowing into the ETH market, the PoS token could break out by 5% and clear the $1,891 resistance level before potentially reaching the $1,921 resistance level.
Currently, however, Ethereum price is looking for a possible turning point, with the $1.8118 level showing itself as a potential turning point for a move north. If this bullish outlook holds true, ETH could surge above the 200-, 50-, and 100-day EMAs at $1,842, $1,852, and $1,857, respectively. Further north, ETH could break $1,981 and in a very bullish case, it could reach the $1,921 hurdle. This would correspond to an increase of 5%.
ETH/USDT 12 hour chart
Conversely, failure of the $1,813 level as support could see ETH decline towards the psychological $1,725 level.
The RS supports the downtrend and is sloping south with a possible break of the 30 level. Likewise, the AO histograms are red and negative, solidifying the bears’ presence in the market.
Aalso Read: Ethereum, XRP, Litecoin, and Cardano Prices May Bottom
Frequently asked questions about Ethereum
Ethereum is an open-source decentralized blockchain with smart contracts functionality. It serves as the backbone network for the cryptocurrency Ether (ETH) and is the second largest cryptocurrency and the largest altcoin by market cap. The Ethereum network is tailored for scalability, programmability, security, and decentralization—traits that make it popular with developers.
Ethereum uses decentralized blockchain technology that allows developers to build and deploy applications independent of the central authority. To make this easier, the network has a programming language that helps users create self-executing smart contracts. A smart contract is basically code that can be verified and enables transactions between users.
Staking is a process whereby investors grow their portfolios by locking their assets for a period of time rather than selling them. It is used by most blockchains, especially those that use the Proof-of-Stake (PoS) mechanism, where users receive rewards as an incentive for staking their tokens. For most long-term cryptocurrency holders, staking is a strategy to earn passive income from your assets and in turn use them to generate rewards.
Ethereum switched from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event called “The Merge”. The transformation came as the network wanted to achieve greater security, reduce energy consumption by 99.95% and implement new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are fewer barriers to entry for miners given the lower energy requirements.
Ripple prices continue to fall
Ripple (XRP) price continues its move south and it could soon test the 200-day EMA at $0.5766 unless the bulls recover. With strong bearish forces, the remittance token could plummet to the $0.5048 support level or, worst case, write off all of the floor covered on the July 13 rally to seek support at the psychological $0.4604 , which means a 20% drop below current levels.
The RSI indicator, which currently stands at 28, is pointing to the bearish prospects for the market, with the AO histograms also supporting the bears’ case.
XRP/USDT 12 hour chart
However, considering the position of the RSI, XRP could be considered overbought if this momentum indicator crosses the 30 area to the north. The resulting demand pressure could push Ripple price higher and potentially breach the $0.6840 hurdle. A sustained uptrend could fuel a rally to $0.8193, which would mark a 40% surge from the current levels.
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