- Bitcoin price remains around $93,000 on Monday after experiencing a 9.53% surge the day before.
- Ethereum price finds support near the $2,125 mark; a potential recovery seems likely.
- XRP closes above its daily resistance of $2.79, indicating possibilities for further recovery.
Bitcoin (BTC) is trading around $93,000 on Monday, following a 9.53% increase the previous day. Ethereum (ETH) and Ripple (XRP) mirrored BTC’s movement with increases of nearly 14% and 35% on Sunday. This price surge was initiated by Donald Trump’s announcement on his Truth Social platform regarding a US ‘Crypto Strategic Reserve,’ which includes Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), aimed at enhancing America’s position in the crypto landscape.
Bitcoin bulls bounce back from recent lows
Last week, Bitcoin price dropped from a high of $96,500 on Monday to a low of $78,258 by Friday. However, it recovered 11.50% over the weekend, closing above $94,270 on Sunday. As of Monday, it is hovering around $93,000.
Should BTC maintain its recovery, there’s potential for it to extend its rally and test the next resistance level at $100,000.
The Relative Strength Index (RSI) on the daily chart is at 48, having rebounded from oversold conditions last week, suggesting slight signs of strength. For bullish momentum to persist, the RSI must remain above the neutral level of 50.
BTC/USDT daily chart
Conversely, if BTC falls below the $90,000 support level, it may continue to decline and retest the $85,000 daily support.
Ethereum shows potential for recovery after closing above $2,359
On Saturday, Ethereum price found support at the $2,125 level and surged 13.56%, closing above its daily resistance level of $2,359 the following day. As of Monday, it is trading around $2,400.
If ETH maintains its upward trajectory, it could extend this rally and aim for the next resistance level at $3,000.
The RSI on the daily chart is at 42, recovering from oversold levels last week, indicating some signs of strength. To sustain bullish momentum, the RSI needs to trade above the neutral level of 50.
ETH/USDT daily chart
However, if ETH drops below the $2,125 level, it could see a further decline to test its weekly support level of $1,905.
Ripple bulls eye the $3.40 target
On Friday, Ripple price found support at $1.96 and surged 37% over the next couple of days, settling above the $2.79 daily resistance. As of Monday, it is trading at $2.79.
If the $2.79 level holds as support, XRP may continue its rally and aim to retest the January 16 high of $3.40.
The RSI on the daily chart is at 57, indicating robust bullish momentum as it is above the neutral level of 50.
XRP/USDT daily chart
If XRP fails to maintain support around $2.79, it could experience a decline to retest the next support level at $1.96.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the top cryptocurrency by market capitalization, designed to function as a digital currency. This payment method is decentralized, meaning no single individual, group, or entity has control over it, removing the necessity for third-party involvement in transactions.
Altcoins refer to any cryptocurrency that is not Bitcoin. Some consider Ethereum as a non-altcoin since it is a primary source for forking. If this definition holds, Litecoin would be the first altcoin, developed from the Bitcoin protocol as an “improved” version.
Stablecoins are cryptocurrencies aimed at maintaining a stable price, their value usually pegged to a reserve asset. They are linked to a commodity or financial instrument like the US Dollar (USD), with their supply managed via algorithms or demand. The primary purpose of stablecoins is to offer a reliable means for investors to trade and invest in cryptocurrencies while allowing for the storage of value, mitigating the volatility associated with most cryptocurrencies.
Bitcoin dominance reflects the ratio of Bitcoin’s market capitalization to that of the total market capitalization of all cryptocurrencies. It provides insight into Bitcoin’s popularity among investors. A high BTC dominance generally precedes or coincides with bull runs, where investors prefer stable, high market cap cryptocurrencies like Bitcoin. Conversely, a drop in BTC dominance often signals that investors are reallocating their funds to altcoins seeking higher returns, typically leading to significant altcoin rallies.
