Relief rally on the cards, but will it manifest?

  • Bitcoin price tags the 200-weekly SMA at $22,383, suggesting the possibility of a relief rally.
  • Ethereum price attempts to recover above the recently breached support level at $1,270.
  • Ripple price prepares to bounce off the $0.240 to $0.315 weekly demand zone and revisit the $0.381 hurdle.

Bitcoin price remains bearish but is now above a support level that has historically marked bottoms for multiple bear markets albeit sometimes with a deviation below it. As sellers slow down their offloading, investors can expect Ethereum, Ripple and altcoins, in general, to start a minor relief rally.

Bitcoin price needs to decide

Bitcoin price has flipped the $29,563 support level into a resistance barrier as it crashes 30% over the last two weeks. This downtrend has also allowed BTC to tag the 200-week Simple Moving Average (SMA), which marked the 2018 and 2020 bear market bottoms.

This level also served as a support level during December 2020, which triggered a massive run-up to $30,000. Hence, the Bitcoin price revisiting this level is a sign that the buyers are going to start stepping in.

Hence, investors can expect a relief rally for BTC. As for the upside objective, market participants can count on bulls revisiting Monday’s high at $26,882.

BTC/USD 1-week chart

While things are looking up for Bitcoin price, a failure to move above the $23,480 resistance barrier will prematurely stop the relief rally. If BTC produces a weekly candlestick close below the 200-week SMA at $22,383, the downtrend will likely continue.

Ethereum price faces decisive moment

Ethereum price crashed 40% over the last two weeks and flipped the high volume node at $1,270 into a resistance barrier. Although ETH dug as low as $1,075, the recovery has pushed it up by 12% to $1,208.

While this bounce is impressive, investors need to wait for a flip of the $1,270 hurdle into a support level. Assuming the bulls are successful, this move will suggest that a recovery rally to $1,730 could be plausible for Ethereum price.

ETH/USD 3-day chart

ETH/USD 3-day chart

On the other hand, if Ethereum price faces rejection at $1,270 due to a lack of buying pressure, it will indicate the possibility of consolidation under this level or slide lower.

In some cases, ETH could crash by 19% and revisit the upper limit of the price inefficiency extending from $964 to $383.

Ripple price approaches launching pad

Ripple price has crashed 28% over the last four days, from $0.411 to $0.293. This downswing has pushed XRP into the weekly demand zone, extending from $0.240 to $0.315. This tailwind increases the remittance token’s chance to trigger a bounce.

The incoming relief rally could see XRP price climb 20% to the immediate hurdle at $0.381.

XRP/USD 1-day chart

XRP/USD 1-day chart

Things are looking relatively better for Ripple price due to the $0.240 to $0.315 weekly demand zone. However, if sellers make a comeback, pushing the XRP price to produce a weekly candlestick close below $0.240, it will create a lower low and invalidate the chances of a relief rally.

,

Leave a Comment

Your email address will not be published.