Altcoin Watch: ETH and XRP Expected to Rise Despite Market Slide
Cryptocurrencies’ price decline continued on Friday, as the Federal Reserve raised interest rates for the second time in less than a week. Bitcoin, which is the world’s largest digital currency, lost more than 1% to around $20,933. Other digital coins such as Solana and Avalanche have also taken a price slump.
Ethereum Might Rise Afterall
The price of Ethereum is showing signs of relief as investors and traders adjust to the new environment of rising inflation. Although it is not yet clear how this will affect the long-term trend, it is believed that there is less disposable cash in cryptocurrencies, which could mean that the bulls can still push the price higher. Looking for a potential sideways patch or a break above the resistance at $118, ETH is still searching for direction.
The price of Ethereum is in an unusual pattern, with bulls taking advantage of the lack of support at around $1,243.89 to push its price higher. The question is whether the bulls have already burned enough cash to reach this level or if they are waiting for a breakout.
The ETH price could continue to rally towards the $1,243.89 resistance area. However, a small pop above could be seen with the dollar trading sideways, and the market has fewer restraints. On the downside, a test of the $1,400 support area could be seen. Investors should take caution as the market has not changed fundamentally.
If the dollar’s strength continues to return, the bulls might get squeezed out of their positions, and this could trigger a break of $1,000, which would trigger an exodus of investors. It could cause the price to fall 25%, to $830.93. The other risk is that the market might get hit by another round of selling, pushing the price back to the lower boundary of the range.
Touch-and-drop Scenarios Suggest XRP Could Reach $0.37
Despite the market’s heavy losses, the price of XRP managed to make small gains during the ASIA PAC session. Given the dollar’s strength, there is not expected to be a massive spike in the cryptocurrency price. A positive headline is a likely welcome, but it is not expected to happen soon.
The price of XRP could briefly reach the important level of $0.37 before it begins to decline again. The monthly S1 support and the floor it is built on are likely to prevent it from rising further. As inflation and concerns about a recession continue to rise, this will continue to be the case throughout the summer. A break below the support could see another 50% drop to $0.17.
It’s widely expected that some breakthrough headlines will hit the wires soon. With the ongoing talks between Russia and Ukraine, expect a massive relief rally to begin once these break. For instance, if the talks between Russia and Ukraine break down, expect an XRP to rise to around $0.37.
Bitcoin Price Set to Slip Below $20,000
Meanwhile, the price of Bitcoin is done for now and will not be moving higher than $30,000 soon. The Fed’s decision on Wednesday night did not provide a rosy picture for cryptocurrencies. As investors try to pull out more money to survive the winter, more pressure will likely emerge on the market.
The BTC price is expected to test the $20,000 mark soon, which is a significant round number that will not be able to trigger a significant turnaround. Instead, the key support level is likely to be the $19,036.23 monthly S2 support, followed by $16,020.44, double support.
If the equity market starts to make new highs, a sustained bullish spillover effect could trigger a significant buying in cryptocurrencies. However, Bitcoin would refrain from testing the $20,000 mark in this scenario. A break above the monthly S1 support could lead to a move higher to the next resistance level at $24,640.13, which is the psychological level. A sustained move above this level could trigger a rally and take the price back to $28,695.13.
