XRP, Bitcoin, Ethereum Target Price Forecasts

What to Know:

• Key takeaway #1 — Bitcoin faces strong resistance around $90,500, a crucial level to overcome for further gains.
• Key takeaway #2 — Altcoins like Solana, Dogecoin, and Cardano show positive RSI divergence, signaling potential easing of selling pressure.
• Key takeaway #3 — Traders should watch for breakouts above key moving averages to confirm bullish reversals, while institutional sentiment remains cautious due to recent ETF outflows.

Bitcoin is currently navigating a challenging phase, with strong selling pressure emerging near the $90,500 mark. Overcoming this resistance is crucial for Bitcoin to sustain any upward momentum. Several altcoins are showing promising signs of positive divergence on the Relative Strength Index (RSI), suggesting that the intense selling might be losing some steam.

S&P 500 Index and its Potential Impact

The S&P 500 Index (SPX) has recently achieved new all-time highs, signaling strong market confidence. If buyers can maintain the price above 6,920, the uptrend is likely to continue, potentially pushing the index towards 7,120 and then 7,290. This positive momentum in traditional markets can often correlate with increased investor appetite for risk assets, including Bitcoin.

However, if the price reverses from its current level, it will likely find support at the moving averages. A strong rebound from these averages would indicate that bulls remain in control, further solidifying the likelihood of continued rallies. Conversely, if bears manage to push the price below the 6,720 support, the index could slide to 6,550, potentially triggering risk-off sentiment across various asset classes.

How is the US Dollar Index influencing Crypto?

The US Dollar Index (DXY) is currently experiencing a tug-of-war between buyers and sellers around the 98.03 support level. For the bulls to gain control, they need to drive the price above the 20-day exponential moving average (EMA) at 98.52. This could potentially propel the index towards the 50-day simple moving average (SMA) at 99.12, and eventually to the overhead resistance at 100.54.

Conversely, if the price turns down and breaks below 97.74, it would signal that bears are in command. This could lead to a slide towards 97.46 and then 97.20, bringing the larger 96.21 to 100.54 range into play. A weaker dollar can sometimes lead investors to seek alternative assets, potentially benefiting Bitcoin and other cryptocurrencies. Monitoring the DXY provides insights into broader macroeconomic factors affecting crypto markets.

Bitcoin’s Price Prediction and Key Levels

Bitcoin (BTC) has faced rejection at the 50-day SMA ($90,525), indicating that bears are actively defending higher levels. The immediate challenge for Bitcoin is to overcome this resistance to signal a potential bullish reversal. Institutional investors are closely watching these levels to gauge market sentiment and potential entry points.

Bears will likely attempt to push the price down to the strong support at $84,000. Buyers are expected to defend this level vigorously, as a break below it could lead to a further decline towards $80,600 and possibly $74,508. Conversely, if the price rebounds from the current level or $84,000, it would suggest that buyers are still active on dips. A close above $90,600 would be the first sign of strength, potentially leading to a rally towards the $94,589 resistance.

What Factors are Influencing XRP’s Price?

Buyers are trying to initiate a recovery in XRP (XRP), but they face selling pressure at the 20-day EMA ($1.92). If the price sharply declines from the moving averages, it suggests that bears are continuing to sell on rallies. This could lead to a retest of the support line of the descending channel pattern. A close below $1.61 would open the possibility of revisiting the October 10 low of $1.25.

Alternatively, a close above the 50-day SMA ($2.06) could propel XRP towards the downtrend line. Sellers are expected to defend this line aggressively, as a break above it would signal a potential trend reversal. The XRP Ledger’s ongoing developments and regulatory clarity continue to be key factors influencing its price and institutional interest. Traders are also monitoring derivatives data and funding rates to assess market positioning.

Could Solana Breakout Soon?

Solana (SOL) briefly rose above the 20-day EMA ($126) but failed to sustain these higher levels, indicating a lack of strong bullish momentum. Sellers are now attempting to push the price below $116, and if successful, the SOL/USDT pair could decline to $110 and potentially to the strong support at $95. Monitoring liquidity and volatility is essential for assessing potential price swings.

A positive divergence on the RSI offers a glimmer of hope for the bulls. To gain the upper hand, buyers need to push the price above the 50-day SMA ($133). If they succeed, the pair could then climb towards the overhead resistance at $147. Solana’s network activity and developments in its ecosystem will likely play a significant role in its ability to sustain any potential breakout.

Bitcoin’s struggle to break through the $90,500 resistance highlights the ongoing volatility and uncertainty in the crypto market. Positive divergences in altcoins offer some hope, but overall, traders should remain cautious and monitor key levels for potential shifts in momentum.

Related: XRP Downtrend Deepens Amid Rising Inflows

Source: Original article