Cryptocurrencies: Ripple, Bitcoin, and Ethereum: Trump's victory propels Bitcoin to record high of $73,777
On Wednesday, as Donald Trump took a lead in the presidential election, bitcoin soared over its all-time high of $73,777.
The $2,485 resistance level is in close proximity to Ethereum, and a strong closing over might indicate potential upward momentum.
It seems that a rebound is imminent as the $0.488 daily level provides support for the Ripple price.
On Wednesday, driven by optimism at Donald Trump's performance in the polls, Bitcoin (BTC) surpassed its previous record high of $73,777. Simultaneously, Ethereum (ETH) is getting close to a critical resistance level; a solid close above it might indicate that price momentum is turning higher. Ripple (XRP) has been finding support at its daily level, suggesting that it might be about to make a comeback.
Breakthrough Price: Bitcoin Aims for $78,777
After encountering resistance at its October 29 all-time high (ATH) of $73,777, the price of bitcoin fell 6.65% during the subsequent six days. But it recovered Monday at $67,000 and gained 2.24% more ground till Tuesday. As of this writing on Wednesday, it is trading at about $73,900, having broken above its ATH.
If BTC is able to conclude the day above its all-time high of $73,777, it may set itself up to reach $78,777, the 141.40% Fibonacci extension level (drawn from July's high of $70,079 to August's low of $49,072).
On Wednesday, the daily chart's Relative Strength Index (RSI) read67, suggesting that the bullish momentum is gathering steam, having rebounded from its neutral level of 50.
On the other hand, Bitcoin may retest the important psychological milestone of $70,000 if it falls and fails to close above $73,777.
Closing over the critical resistance level would set Ethereum up for a rally.
On Monday, the price of Ethereum fell below the rising trendline, which has been constructed from the combination of many low points with a trendline since early September. However, it regained support around the $2,342 daily level and made a little recovery on Tuesday. Wednesday sees a price increase and trades around $2,500, surpassing the $2,485 50% price retracement barrier.
Closing over $2,485 would signal a 10% rise, allowing ETH to revisit its high of $2,769, which it reached on October 21.
On the daily chart, the relative strength index (RSI) is showing a bullish trend at 50, which is above its neutral level and indicates that bulls are trying to wrest control from bears. The relative strength index (RSI) has to close above 50 and keep going higher if the bullish momentum is to continue.
If Ethereum prices continue to fall and drop below the $2,342 daily support level, the bullish thesis will no longer hold. Under this scenario, the downward trend would be sustained for another nine percent, with the price retracing to its low of $2,150 on September 6.
Evidence of Ripple's Revival
On Sunday, the price of ripple gained support at the $0.488 daily level and went on to rise more than 3.5 percent till Tuesday. It is still trading at a little over $0.526 as of Wednesday's writing.
A 15% extension of the rally to retest its daily barrier at $0.626 is possible if XRP maintains its upward trajectory and closes over the next daily resistance at $0.544.
Additional bullish crossing indication from the Moving Average Convergence Divergence (MACD) indicator on Wednesday's daily chart lends credence to Ripple's ascent. A purchase signal was given when the MACD line (blue line) crossed above the signal line (yellow line). There is further positive momentum building as the relative strength index (RSI) on the daily chart has flipped over its neutral level of 50 and is now at 50.
But a 12% drop may take XRP back to its August 5 low of $0.431 if it falls and closes below $0.489