Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH and XRP enter the New Year with breakout hopes
- Bitcoin price has been sideways between $85,500 and $90,000 for nearly three weeks, signaling indecision in the market.
- Ethereum approaches its 50-day EMA at $3,110, a firm close above this level could trigger a rally.
- XRP trades around $1.87, and a decisive close above $1.96 would support further upside.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) entered the new year trading at key technical levels on Friday, as traders seek fresh directional cues in January. With BTC locked in a tight range, ETH is approaching its 50-day Exponential Moving Average (EMA), while XRP is nearing resistance. A clear breakout across these top three cryptocurrencies could help define market momentum in the opening weeks of the year.
Bitcoin lacks direction as consolidation extends into the New Year
Bitcoin price has been consolidating between $85,500 and $90,000 for nearly three weeks, indicating indecision in the market. As of Friday, BTC hovers around $88,400.
If BTC breaks and closes above the $90,000 on a daily basis, it could extend the rally toward the next resistance at $94,253.
The Relative Strength Index (RSI) on the daily chart is at 48, near the neutral 50 level, indicating fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover, which remains intact, supporting a slightly bullish view.
However, if BTC corrects, it could extend the decline toward the lower consolidation boundary at around $85,500.
Ethereum could rally if it closes above the 50-day EMA
Ethereum price found support around the previously broken descending trendline on December 19 and consolidated around the daily resistance level at $3,017 for the next 12 days. As of Friday, ETH hovers near this resistance level.
If ETH breaks above the $3,017 resistance level and closes above the 50-day EMA at $3,110, it could extend the rally toward the December 10 high of $3,447.
The RSI on the daily chart is flattening near the neutral 50 level, signaling indecision among traders. However, like Bitcoin, Ethereum’s MACD indicator also showed a bullish crossover, which remains intact, supporting a slightly bullish view.
However, if ETH faces a pullback, it could extend the decline toward the key support at $2,749.
XRP momentum indicators show signs of improvement
XRP price was retested and rejected near the daily resistance at $1.96 on December 21, triggering a 5.6% decline over the following three days. It has since been consolidating around $1.80 for nearly a week. As of Friday, it hovers around $1.87.
If XRP breaks and closes above the daily resistance at $1.96, it could extend the rally toward the next key resistance at $2.35.
The RSI on the daily chart is at 43, pointing upward toward its neutral level of 50, indicating fading bearish momentum. For the bullish momentum to be sustained, the RSI must move above the neutral level. Meanwhile, the MACD indicator showed a bullish crossover, which remains intact, supporting a slightly bullish view.
However, if XRP faces a correction, it could extend the decline toward the December 19 low of $1.77.
Cryptocurrency metrics FAQs
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 is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
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 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.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
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