- Bitcoin price remains steady at approximately $87,000 on Friday; RSI suggests traders are uncertain.
- Ethereum price is around $2,000 after experiencing a 3.73% drop over the past three days.
- XRP is testing its 100-day EMA at $2.31; a solid close below this level could signal further declines.
On Friday, Bitcoin (BTC) price holds steady at about $87,000, while its RSI reveals uncertainty among traders. In contrast, Ethereum (ETH) and Ripple (XRP) appear to be weakening as they encounter resistance at critical levels, leading to a pullback this week.
Bitcoin’s RSI flatlines, indicating trader indecisiveness
Bitcoin price broke above its 200-day Exponential Moving Average (EMA) at around $85,580 on Sunday, gaining 4.45% by Monday. However, BTC has since stabilized around $87,000 over the following days, finding support near its 200-day EMA. As of Friday, it hovers slightly below its descending trendline, which has been established by connecting several high points since mid-January.
If the 200-day EMA continues to hold as support and BTC breaks above the descending trendline, it may lead to a rally towards the significant psychological level of $90,000. A successful close above this level could pave the way for further gains towards the March 2 high of $95,000.
The RSI on the daily chart is currently at 51, hovering around the neutral level of 50 since Monday, indicating uncertainty among traders. For the bullish momentum to persist, the RSI needs to trend upward and exceed the neutral level of 50.
BTC/USDT daily chart
Should BTC encounter resistance at the descending trendline and close below the 200-day EMA, it could see further declines, retesting the next support level at $78,258.
Ethereum exhibits signs of weakness
Ethereum’s price has found support around the daily level of $1,861 for the past two weeks, recovering nearly 7% last week. ETH continued this upward trend on Monday, closing above $2,081; however, it has since undergone a correction of nearly 4% over three consecutive days. As of Friday, it is trading below the $2,000 mark.
If ETH continues to retreat, it may extend its decline to test the daily support at $1,861.
The RSI on the daily chart is at 43, having faced rejection from the neutral level of 50 earlier this week, suggesting bearish momentum.
ETH/USDT daily chart
On the other hand, should it regain momentum, it may attempt to retest its March 7 high of $2,258.
Ripple price may face a downturn if it closes below its 100-day EMA
Ripple’s price breached its 100-day EMA at $2.32 last week and rallied almost 7%. However, XRP has since experienced a pullback, declining 5.74% by Thursday. As of Friday, it is approaching its 100-day EMA at around $2.31.
If XRP fails to secure support at this EMA and closes below, it could lead to further declines, testing the next support level at $1.96.
The RSI on the daily chart reads 46, dipping below its neutral level of 50 earlier this week, indicating bearish momentum.
XRP/USDT daily chart
If the 100-day EMA around $2.32 holds, it could also lead to a recovery towards the next resistance level at $2.72.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, serving as a virtual currency designed for transactions without the intervention of a single authority, which alleviates the need for third-party involvement.
The term ‘altcoin’ refers to any cryptocurrency other than Bitcoin, although some consider Ethereum to fall outside of this category due to its original protocol. If that’s the case, Litecoin qualifies as the first altcoin, having been forked from Bitcoin and marketed as an improved version.
Stablecoins are a category of cryptocurrencies intended to maintain a stable price, typically backed by a reserve of assets it represents. Their value is often pegged to a commodity or financial instrument such as the US Dollar (USD), and their supply is managed algorithmically or via demand mechanisms. The primary aim of stablecoins is to provide a stable trading and investment vehicle within the volatile cryptocurrency market.
Bitcoin dominance denotes the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined, offering insight into Bitcoin’s popularity among investors. High BTC dominance usually indicates a bullish phase, where investors prefer stable large-cap cryptocurrencies like Bitcoin. Conversely, a drop in dominance signifies a shift of investments toward altcoins in search of higher returns, often catalyzing altcoin rallies.
