Bitcoin price is seeing an increase in buying volume, establishing a solid support zone for the future. Meanwhile, Ethereum's price action is waiting for buyers to overcome key resistance and the XRP price continues to float near its final support zones.
Thus, this is the opinion of trader Jonathan Morgan, widely known on Reddit and who has already hit the rise of altcoins such as SAND and MANA, both linked to metaverse platforms.
So in the case of Bitcoin, the main cryptocurrency on the market, Morgan points out that from an Ichimoku perspective, the price action of BTC is overwhelmingly bearish. Thus, the current close is below Tenkan-Sen and Kijun-Sen (Senkou Span A and Senkou Span B).
"The red zone highlighted in the graphic image below represents a decisive price level for Bitcoin since late November 2021."
So he points out that the red zone establishes two levels in the current Volume Profile, where Bitcoin is the weakest.
So, below the $48,000 value area, Bitcoin is under huge threat of rapid collapse towards the next $37,000 high-volume node.
"The price of Bitcoin has been flirting with a meltdown for over a month, yet even so, bears have been unable or unwilling to push Bitcoin into a liquidation zone," he says.
In the case of Ethereum, he points out that the cryptocurrency has been developing a strong upward reversal pattern in the analysis of points and figures known as Shakeout.
Thus, he points out that this pattern, however, is only valid if an instrument is in a broader uptrend and entry should occur near the beginning of an upside continuation move.
“In other words, the bullish move allows investors to enter one of the first opportunities after a corrective move. The importance of this hypothetical buy configuration is not just the pattern itself, but the two other events that coincide if the entry is triggered,” he said.
So he points out that in the case of ETH, the hypothetical long entry for the price of Ethereum is a buy order at $4,000, a stop loss at $3,500, and a profit target at $6,000.
In the case of XRP, however, it remains restricted within a collection of critical Fibonacci and Ichimoku levels. Between the price range of $0.82 and $0.89, Tenkan-Sen, Kijun-Sen, Senkou Span A.
“It's no wonder, therefore, that XRP has struggled to make some headway in the $0.90 price range,” he said.
Despite that, he says, the XRP could trigger a huge bull blast soon.
So to justify his prediction he points out that the Optex Bands oscillator, Relative Strength Index and Composite Index are all perfectly positioned to confirm any significant upward push by the XRP price – and that such a move could be sustained.
“The main oscillator to look at is the Composite Index. If the composite index crosses above its moving averages, then the XRP will likely be positioned near the $1.00 price level,” he says.
So, he says, ultimately the XRP price needs a close of $1.00 or more to ensure the XRP is in a clear and undeniable uptrend.
“The failure to maintain the $0.80 support zone could trigger a massive dip towards the $0.5 zone,” he concludes.
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