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$XRP
The price of Ethereum is approaching the important support level of $3,000; a close below this level will lead to further decline.
The price of Ripple is approaching the key resistance level of $0.854; a rejection will lead to a decline.
Bitcoin (BTC) and Ethereum (ETH) showed slight recovery on Friday after the decline on Thursday; however, momentum indicators suggest continued downward movement as signs of exhaustion in bulls appear. Ripple (XRP) is approaching a key resistance level, with the possibility of rejection leading to a decline ahead.
Bitcoin bulls show signs of exhaustion
The price of Bitcoin reached a new all-time high of $93,265 on Wednesday and fell 3.3% on Thursday. At the time of writing on Friday, it trades slightly above around $88,200.
The Relative Strength Index (RSI) also stands at 75, above the overbought level of 70. It is pointing down, indicating increased risk. Traders should be cautious when adding to their long positions, as a move out of the RSI overbought zone could provide a clear signal of a correction.
If BTC faces a correction, it could drop 10.6% from the current position and retest its support level of $78,807.
Daily chart $BTC /USDT
Conversely, if bulls continue their upward momentum, the uptrend could extend to retest the Fibonacci extension of 241.40% at $99,887, drawn from the July high of $70,079 to the August low of $49,000.
The price of Ethereum may decrease if it closes below $3,000
The price of Ethereum was rejected around the $3,454 mark on Tuesday and fell 9.2% by Thursday. On Friday, it traded slightly higher, around $3,084, approaching the important psychological level of $3,000.
If ETH closes below the $3,000 level, it could drop to retest the 200-day Exponential Moving Average around $2,789.
The RSI index on the daily chart reads 61 after breaking out of the overbought level of 70. If the RSI continues to decline and closes below the neutral level of 50, the price of Ethereum will decrease further.
Daily chart $ETH /USDT
However, if ETH breaks and closes above the weekly resistance at $3,454, it will rise to retest the important psychological level of $4,000.
The price of Ripple may decrease if it is rejected at $0.854
The price of Ripple has surpassed the daily resistance of $0.714 and increased by 12% on Thursday. As of Friday, it trades higher at around $0.801, approaching the resistance level of $0.854.
If XRP is rejected around the $0.854 level and drops, it will extend the downtrend to retest the support level of $0.714.
The RSI index on the daily chart reads 86, above the overbought level of 70, indicating increased risk. Traders should be cautious when adding to their long positions, as a move out of the RSI overbought zone could provide a clear signal of a correction.
Daily chart $XRP /USDT
On the other hand, if XRP closes above $0.854, it will extend the uptrend to retest the next target at $0.930
