The frenzied rally of cryptocurrencies seems to have peaked. After reaching all-time highs, Bitcoin, Ethereum, and Ripple show clear signs of exhaustion and could be on the verge of experiencing a significant correction.
Bitcoin: Is the king dead?
The reigning cryptocurrency, Bitcoin, has experienced a roller coaster in recent weeks. After reaching a stratospheric price of $104,088, Bitcoin suffered a sharp drop, testing investors' resistance. Although it partially recovered, technical indicators such as the RSI suggest that the initial euphoria has faded and a deeper correction may be brewing. If the price closes below $90,000, we could witness a crash towards $85,000.
Ethereum: The shadow of $4,000
Ethereum, the second largest cryptocurrency by market capitalization, has been struggling to overcome the resistance of $4,000. Despite a strong bullish momentum last week, the cryptocurrency has failed to consolidate above this key level. The RSI, which is in overbought territory, indicates that the bullish momentum is weakening. If Ethereum fails to surpass this barrier, it could experience a correction towards $3,721.
Ripple: The wave is retreating
Ripple, which has been one of the standout cryptocurrencies in recent weeks, has also shown signs of weakness. After reaching resistance at $2.66, XRP has significantly retraced. The RSI, which remains at elevated levels, suggests that the bullish momentum is waning. If the resistance at $2.66 holds, Ripple could retest the psychological level of $2.
What does this mean for investors?
The recent volatility in the cryptocurrency market has highlighted the highly speculative nature of these investments. Investors should be aware of the risks associated with cryptocurrencies and be prepared for greater volatility in the short term.