BTC, ETH, XRP Predictions: Market Eyes Key Zones

Key Moments

Bitcoin Attempts to Stabilize After Sharp Pullback

Bitcoin (BTC) saw a modest recovery on Monday after a sizable correction last week. The BTC price had closed below the midpoint of a horizontal parallel channel at $87,787 on Sunday, following a 7.4% decline over the prior week. By the time of writing on Monday, Bitcoin was inching back toward this broken level.

A daily close above $87,787 would open the door for an extension of the rebound toward the upper boundary of the horizontal pattern at $90,000.

However, technical indicators on the daily chart continued to reflect a cautious backdrop. The Relative Strength Index (RSI) stood at 39, below the neutral 50 level, signaling bearish momentum. For any recovery to gain traction, the RSI would need to push back above 50.

Traders were also monitoring the Moving Average Convergence Divergence (MACD), which registered a bearish crossover last week and has remained in that configuration, suggesting that downside risk persists.

If selling pressure resumes, Bitcoin could revisit the lower boundary of the consolidation zone at $85,569. This level also aligns with the 78.6% Fibonacci retracement, reinforcing its technical significance.

Ethereum Trades Near Fibonacci Support Zone

Ethereum (ETH) was also attempting a mild rebound after recent weakness. ETH closed below daily support at $3,017 on Tuesday and then slid 5.5% through Sunday. On Monday at the time of writing, Ethereum was changing hands around $2,852, approaching a key support area at $2,749.

The $2,749 level coincides with the 61.8% Fibonacci retracement. If this support area holds, ETH could stage a recovery back toward the former support-turned-resistance at $3,017.

Even so, traders were urged to remain cautious, as both Bitcoin and Ethereum’s RSI and MACD indicators were signaling ongoing bearish momentum.

If ETH fails to defend $2,749 and closes below that threshold, the decline could extend toward the November 21 low at $2,623.

XRP Sees Modest Bounce After Testing Daily Support

Ripple (XRP) has been under pressure for several weeks, with the price declining more than 12% over the past three weeks since early January. This pullback brought XRP down to retest daily support at $1.83 on Sunday.

By Monday at the time of writing, XRP was showing a slight rebound, trading around $1.87.

As long as the daily support at $1.83 holds, XRP has room to extend its recovery toward the next daily resistance level at $1.96.

Nevertheless, similar to BTC and ETH, XRP’s daily RSI and MACD indicators continued to align with a bearish bias.

If XRP closes below $1.83, the downside could deepen toward the December 19 low at $1.77.

Key Crypto Market Metrics Explained

Circulating Supply

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market Capitalization

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.

Trading Volume

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding Rate

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.