⭐With regard to a momentum indicator, the price behavior of bitcoin demonstrates a positive divergence.
⭐There is support for the price of Ethereum around $3,362, which is the price low from Friday.
⭐The price of Ripple is vulnerable to being rejected by its daily resistance level, which is $0.499 level.
An indication of an impending bullish trend is provided by the price movement of Bitcoin (BTC), which displays a bullish divergence on a momentum indicator. The trajectory of Ethereum (ETH) and Ripple (XRP) is about to be replicated by Bitcoin, as both cryptocurrencies are getting ready to break through resistance levels and rise higher in unison.
Price movement for bitcoin implies that bullish momentum is there.
On Monday, the price of bitcoin was unable to overcome the weekly resistance level of $67,147, which resulted in a decline of 2.2%. The 50% retracement level for Bitcoin is presently at $64,274, which was determined by taking the swing low of $56,523 on May 1 and the swing high of $71,995 on May 21. This level is currently providing support for Bitcoin.
These two indicators, the Relative Strength Index (RSI) and the Awesome Oscillator (AO), provide credence to the rebound that was discussed before. The greater high that the RSI reached within the same time period does not correspond to the lower low that was produced in the 4-chart on June 18. The occurrence of this phenomenon is referred to be a bullish divergence, and it often results in a reversal of the trend or a rise in the near term.
It is possible that Bitcoin (BTC) might continue its surge by a further 6% in order to achieve its prior resistance level of $71,280 if the bulls are aggressive and the general economic prognosis for the cryptocurrency market is strong.
Nevertheless, the bullish thesis would be rendered worthless in the event that the price of Bitcoin breaks and closes below its daily support level of $60,800. This would result in a loss of 4%, which would bring the price below its weekly support level of $58,375.
The price of Ethereum is showing signs of promising a rebound.
Around the low point of $3,360 that occurred on Friday, the price of Ethereum finds support, and it is presently trading around $3,533. There is a 61.8% Fibonacci retracement level around $3,279, which is approximately in the vicinity of the $3,360 low.
If this support continues to hold, the price of ETH might increase by three percent from its current trading price of $3,533 to reach its previous high of $3,717, which was reached on June 9.
Both the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are on their approach to breaking above their respective mean levels of 50 on the 4-hour chart. The RSI has broken above its mean level of 50. In the event that bulls are, in fact, making a return, then it is imperative that both momentum indicators continue to maintain their positions above their respective mean levels. If anything like this were to occur, it would provide a boost to the recovery rally.
Additionally, if Ethereum is able to close above $3,717, it has the potential to extend its rise by 6%, bringing it closer to its prior resistance mark of $3,977.
On the other hand, if the price of Ethereum's daily candlesticks were to fall below the $3,292 level, this would result in a lower low and indicate a break in the structure of the market. If this move were to occur, it would render the bullish thesis that was previously expressed incorrect, which may possibly result in a further 13% drop to the prior support level of $2,864.
Ripple's price is on the verge of breaking out.
On Monday, the price of Ripple encountered resistance around $0.515, which is its 50-day Exponential Moving Average (EMA), and it had a decline of 3%. The current price of XRP on the market is $0.495.
If the price of Ripple is able to break over the 50-day exponential moving average at $0.515, it has the potential to increase by 7%, from $0.499 to $0.532, which is the previous high from June 5.
The Awesome Oscillator (AO) is below its zero line, and the Relative Strength Index (RSI) on the daily chart is below the 50 mean level. Both of these indicators are below their respective zero lines. In order to determine whether or not bulls are actually making a return, it is necessary for both momentum indicators to maintain their positions more than their respective mean levels of fifty and zero. The rally for the recovery would be bolstered by such a scenario.
If the bulls are active and the general prognosis for the cryptocurrency market is optimistic, the price of XRP might extend a further 9% to $0.581, which would be a price retracement level of 50% between $0.419 and $0.744. This would occur between March 11 and April 13.
If, on the other hand, the price of Ripple were to produce a daily candlestick close that was lower than $0.450, which is the daily low from June 7, then this move would render the bullish thesis worthless since it would result in a lower low on the daily time frame. As a result of this occurrence, the price of XRP may drop by 7%, reaching its lowest point of $0.419 on April 13.
