Prices of Ethereum (ETH) and Bitcoin (BTC) are retracing in what is probably wave four of a five-wave rising trajectory. The price of XRP may emerge from a long symmetrical triangle.
Since Nov. 22, there has been an increase in the price of bitcoin. It broke out of the channel on January 13 and eight days later achieved a high of $23,371.
But it started to decline once the RSI produced a bearish divergence.
The rise is probably a portion of wave three of a five-wave upward trend because of the breakout from the channel (black). If so, wave four’s most likely shape is a decline, which would bring the price of bitcoin to either the 0.382 or 0.5 Fib retracement support levels at $20,737 or $19,896, as appropriate.
After then, the fifth and final wave might max out at around $26,077 according to wave one’s 3.61 extension.
The retracement would be finished and a climb toward $26,077 would start if the BTC price rose above its high of $23,371 on January 21.
However, a decline below the $18,410 high of wave one would invalidate this bullish price analysis.
The native token of the Ethereum blockchain is called ETH. It focused on smart contracts and was developed by Vitalik Buterin. The price fluctuation of Ethereum and that of bitcoin are quite comparable. On January 11, the price escaped from a declining resistance line, which has since risen. It climbed to a high of $1,679 on January 21. But following that, it dropped due to the daily RSI’s bearish divergence.
The price of ETH is most likely in wave four of an ascending five-wave pattern. Therefore, the current downturn may terminate close to the $1,488–$1,416 0.382–0.5 Fib retracement support levels. The Ethereum price is forecast to rise over the Aug. 2022 peak at $2,030 during wave five.
Similar to the price of Bitcoin, a decline below the wave one high at $1,352 would invalidate this optimistic prognosis.
The price of XRP produced a bullish hammer candlestick on January 2, which started the current rising trend. The $0.38 resistance region was breached on January 14 and confirmed as support four days later.
XRP has been attempting to exit a declining resistance line that has been in place for 124 days during the previous 24 hours. The price might rise to the next resistance at $0.51 if it is successful.
If it gets rejected instead, a drop to $0.38 would be expected.There is no bearish divergence in the daily RSI, which is continuing rising. A breakout is thus the most likely event.
To sum up, following significant upward swings, the values of Bitcoin and Ethereum are currently retreating. A descending resistance line is acting as a barrier that the XRP price is trying to overcome. The Bitcoin and Ethereum trends would turn negative if they fell below $18,410 and $1,352, respectively, while the XRP price would do the same if it closed below $0.38.