- Bitcoin price consolidates above key support at $111,980 as traders await the next directional move.
- Ethereum holds support near $4,232, with eyes on a potential recovery.
- Ripple’s XRP stabilizes around $2.88 on Friday after rejection from the 50-day EMA at $2.93 the previous day.
Top 3 cryptocurrencies Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading cautiously at the time of writing on Friday as traders brace for potential volatility ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole Symposium. BTC holds above its key support, ETH shows some signs of resilience, while XRP struggles near its 50-day Exponential Moving Average. The crypto market’s next move may hinge on Powell’s guidance on the Fed’s policy outlook.
Bitcoin consolidates above its key support at $111,980
BTC price has fallen over 8% from its record of $124,747 on August 14, closing below an ascending trendline drawn by connecting multiple lows since early April this week, and retested its support level at $111,980 on Thursday. At the time of writing on Friday, it hovers at around $113,432.
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If the support at $111,980 holds and BTC recovers and closes above its 50-day EMA at $114,786, it could extend the recovery toward its next daily resistance at $116,000.
However, the Relative Strength Index (RSI) reads 43 below its neutral value of 50, suggesting bearish momentum. For the recovery rally to be sustained, the RSI must move above its neutral value.
BTC/USDT daily chart
However, if BTC continues its correction and closes below $111,980 support, it could extend the decline toward its 100-day EMA at $110,605.
Ethereum shows some signs of resilience
Ethereum price reached a new yearly high of $4,788 last week on August 14, but failed to continue its upward trend and declined by over 14% in the next five days until Tuesday. However, ETH recovered 6.39% the next day and found support around the daily level of $4,232 on Thursday. At the time of writing on Friday, it trades slightly above at $4,282.
If the daily level at $4,232 continues to hold as support, ETH could extend the recovery toward its next daily resistance at $4,488. A successful close above this level could extend the rally toward its yearly high at $4,788.
The RSI on the daily chart reads 56, rebounding from its neutral level of 50 on Tuesday and points upward, suggesting bullish momentum is gaining traction.
ETH/USDT daily chart
However, if ETH faces a correction and closes below its daily support at $4,232, it could extend the decline toward its next support level at $3,946.
XRP faces rejection from the 50-day EMA
XRP price faced rejection around the daily level of $3.40 on August 14 and declined over 12% in the next five days, closing below the 50-day EMA at $2.93 on Tuesday. XRP recovered slightly on Wednesday, but faced a rejection from its 50-day EMA the next day. At the time of writing on Friday, it continues to trade down at $2.83.
If the 50-day EMA at $2.93 continues to hold as resistance, XRP price could extend the decline to retest its key support at $2.72.
The RSI on the daily chart reads 41 below the neutral level of 50, pointing downward, indicating strong bearish momentum. The Moving Average Convergence Divergence (MACD) showed bearish crossover and rising red histogram bars, supporting the bearish thesis.
XRP/USDT daily chart
Conversely, if XRP recovers and closes above its 50-day EMA at $2.93, it could extend the recovery toward its daily resistance at $2.99.
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