- Bitcoin price hovers around $108,500 on Monday, inches shy of its all-time high.
- Ethereum closes above its key resistance at $2,461, hinting at a rally ahead.
- XRP nears its key resistance at $2.23, a breakout could trigger an upward momentum.
Bitcoin (BTC) price is hovering around $108,500 at the time of writing on Monday, just 3% shy of its all-time highs. Ethereum (ETH) closes above its key resistance level, signaling a potential for an extended rally. Meanwhile, Ripple (XRP) nears its critical level; a successful breakout could fuel upward momentum in the near term.
Bitcoin is shy of its record highs
Bitcoin price rose sharply by 7.32% last week, closing above $108,000. At the time of writing on Monday, it hovers at around $108,500.
If BTC continues its ongoing rally, it could extend toward the May 22 all-time high at $111,980. A successful close above this level could extend additional gains to set a new all-time high at $120,000.
The Relative Strength Index (RSI) on the daily chart reads 59, above its neutral level of 50, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) on the daily chart also displayed a bullish crossover on Thursday, providing a buy signal and indicating an upward trend.
BTC/USDT daily chart
However, if BTC faces a correction, it could extend the decline to find support around the 50-day Exponential Moving Average (EMA) at $104,158.
Ethereum is set for an upleg as it closes above its key resistance
Ethereum price broke above its 50-day EMA at $2,429 on Tuesday and found support around this level, subsequently breaking above the key resistance at $2,461 on Sunday. At the time of writing on Monday, it trades around $2,498.
If ETH finds support around the $2,461 level, it could extend the rally toward its next daily resistance level at $2,724.
The RSI on the daily chart reads 52, above its neutral level of 50, indicating that bullish momentum is gaining traction. The MACD is hinting at a bullish crossover (the MACD line is close to crossing above the signal line), which, if completed, would give a buy signal.
ETH/USDT daily chart
On the other hand, if ETH closes below the 2,461 level, it could extend the decline to find support around its 50-day EMA at $2,429.
XRP is on the verge of a bullish breakout
Ripple price found support around its daily level of $1.96 last week and rallied by nearly 9%. At the time of writing on Monday, it is approaching its key resistance at $2.23.
If XRP breaks and closes above its daily resistance at $2.23, it could extend the rally toward its May 23 high of $2.47.
The RSI on the daily chart is approaching its neutral level of 50, indicating a fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above its neutral level. The MACD indicator also displayed a bullish crossover on Friday, providing a buy signal and indicating an upward trend.
XRP/USDT daily chart
Conversely, if XRP continues its decline, it could extend the correction to retest its daily support at $1.96.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
