- Bitcoin price might drop lower if it cannot sustain the recent sweep above a critical resistance level at $36,735.
- Ethereum price is also facing a supply zone that extends from $2,689 to $2,843 and hints at a decline.
- XRP price faces a confluence of resistance levels and hints at a 10% decline to $0.985.
Bitcoin price tiptoes after slicing through a barrier
Bitcoin price recently breached a resistance level at $36,735 and is currently trading above it. However, a failure to stay above it might lead to a downswing toward this week’s open at $35,669 or the previous week’s opening price of $34,758.
If the selling pressure breaks through both of the crucial support barriers, the buyers will likely step in after a brief dip into the demand zone, extending from $31,111 to $34,000.
Investors can expect a retracement that could stretch up to 7% before an upswing narrative evolves.
A dip into the said demand area might replenish the buying pressure, opening up the possibility for a quick 20% rally to the recent swing high at $40,900. Following a breach of this level, Bitcoin price might rise to $41,986 if the buying pressure persists. This point is the local top created in early January that coincides with the right shoulder’s peak.
BTC/USD 6-hour chart
If this pullback produces a 6-hour candlestick close below $31,111, it would invalidate the bullish outlook and trigger a downswing below it. However, the chances of this scenario occurring are slim to none.
Ethereum price follows the flagship cryptocurrency
Like Bitcoin, Ethereum price is currently facing a supply zone extending from $2,689 to $2,843. A rejection at this level will push ETH down to the weekly open at $2,383, which is an 11% downswing. If the buyers fail to defend this level, Ether will slide to the immediate support at $2,101, which coincides with the previous week’s opening price.
Investors can expect a reversal here that could push the smart contract token up by 25% to the supply zone’s lower trend line at $2,689.
ETH/USD 6-hour chart
However, if the May 19 swing low at $1,850 is breached, it would invalidate the short-term bullish outlook and trigger a consolidation for Ethereum price. Under these conditions, ETH could slide to the immediate support level at $1,730.
Ripple price stuck between two barriers
Ripple price is currently tussling with the 100 four-hour Simple Moving Average (SMA) at $1.094, which coincides with the supply zone’s lower limit. Therefore, investors can expect a minor 10% pullback into the demand zone, stretching from $0.948 to $0.985. Interestingly the 50 four-hour SMA at $0.942 is present extremely close to the level mentioned above.
Therefore, a pullback will mostly face extinction here, allowing buyers to kick-start a move higher.
This attempt will most likely push XRP price to the 100 four-hour SMA at $1.094. A successful breach of this level will allow the buyers to conquer the supply zone.
Only a decisive close above $1.183 will confirm a breakout. Such a move will allow the bulls to carry the remittance token to retest the 200 four-hour SMA at $1.293.
XRP/USD 4-hour chart
On the flip side, if XRP price fails to hold above $0.934, it will invalidate the optimistic narrative detailed above. This downswing will set the stage for a 9% crash to $0.840.