Bitcoin (BTC) and Ethereum (ETH) are nearing the key resistance levels at the time of writing on Friday, and a successful breakout could open the door for a fresh rally. Meanwhile, Ripple (XRP) is stabilizing around a crucial support zone, hinting at a potential rebound if buyers maintain control.
Bitcoin could rally if it closes above key resistance zone
Bitcoin price was rejected at the 61.8% Fibonacci retracement level at $94,253 (drawn from the April low of $74,508 to the all-time high of $126,199 set in October) on Wednesday and declined slightly that day. However, on Thursday, BTC rebounded after retesting its $90,000 psychological level. At the time of writing on Friday, BTC hovers at around $92,000.
If BTC breaks above the descending trendline and closes above the $94,253 resistance level, it could extend the rally toward the $100,000 psychological level.
The Relative Strength Index (RSI) on the daily chart is near the neutral 50 level, suggesting fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level. Moreover, the Moving Average Convergence Divergence (MACD) showed a bullish crossover at the end of November, which remains intact, supporting the bullish thesis.
Looking up, if BTC continues its correction, the next key support is at $85,569, which aligns with the 78.6% Fibonacci retracement level.
Ethereum could extend gains if it closes above the 50-day EMA
Ethereum price broke above the descending trendline (drawn by joining multiple highs since October 7) on Tuesday and rose 6.21%. However, on Wednesday, ETH faced resistance around the 50-day Exponential Moving Average (EMA) at $3,310 and declined slightly the next day. As of Friday, ETH is nearing the 50-day EMA.
If ETH closes above the 50-day EMA at $3,310, it could extend the rally toward the next key resistance at $3,592.
The RSI on the daily chart is at 54, above its neutral level of 50, indicating bullish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) showed a bullish crossover, which remains intact, supporting the bullish thesis.
On the other hand, if ETH faces a correction, it could extend the decline toward the daily support at $3,017.
XRP finds support around key level
XRP price found support at $1.96 on Sunday and rose 3.66% over the next two days. However, on Wednesday, XRP corrected, erasing most of its recent gains and resting on the daily support at $1.96 the next day. As of Friday, XRP hovers around $2.03.
If the daily support at $1.96 holds, it could extend the rally toward the next daily resistance at $2.35.
The RSI on the daily chart reads 42, near the neutral 50 level, suggesting fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level. However, the Moving Average Convergence Divergence (MACD) lines are converging, indicating indecision among traders.
On the other hand, if XRP closes below the daily support at $1.96, it could extend the decline toward the next daily support at $1.77.