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- An analyst has cautioned that Bitcoin’s (BTC) price could drop to $108k after plunging below $116k from its new all-time high of $124k.
- Ethereum (ETH) is also expected to finish the year at $7,500 despite the fading momentum.
Investors find themselves at a critical crossroad as the crypto market, led by Bitcoin (BTC), Ethereum (ETH), and XRP, records fading momentum to recede from their weekly highs. At the time of writing, the broad crypto market valuation had declined by 2.79% to $3.88 trillion while the market cap of the top 100 cryptos had dropped by 3.16%.
Bitcoin’s Price Action and Potential Direction
Bitcoin’s market dominance has surprisingly dropped to 59% as the price continues to find support below the $116k. According to market data by CoinMarketCap, the asset has printed losses in three of the five major trading sessions, falling by 2.3% in the last 24 hours, 5.7% on its seven-day chart, and 2.5% in the last 30 days. Currently, Bitcoin trades at $115.2k. However, its daily trading volume remains 25% up.
Commenting on the ongoing market behavior, popular crypto analyst and market commentator, Lark Davis, highlighted that the price could continue to fall till it reaches the $108k and $112k range. According to him, these levels serve as the 50% and 61.8% Fibonacci retracements. Most importantly, they have been the points where profit-taking slows down and new buying momentum emerges.
As highlighted in our last analysis, Ben Kurland, the CEO of crypto research and trading platform DYOR, however, argues that this strong momentum may not go away instantly. According to him, the market is now more of validation and less of euphoria.
Ethereum (ETH) Price Action and Potential Direction
Just like BTC, ETH’s market dominance has dropped to 13.24% as its price declines by 4% in the last 24 hours and 0.6% in the last seven days. At the current price of $4,271, ETH’s trading volume remains 54% up.
On the daily chart, ETH’s Relative Strength Index (RSI) is around 62 after facing rejection from the overbought territory. Coupled with this fading momentum, its MACD is on the verge of forming a bearish crossover.
According to Nansen analyst Jake Kennis, ETH may consolidate for some time after its recent upsurge. Technically, this implies that the run to a new all-time high price could be weeks or even a couple of months away. For Standard Chartered analysts, ETH could hit $7,500 by year’s end, as indicated in our previous publication.
Meanwhile, this is said to depend on the institutional and Exchange Traded Fund (ETF) interest. Per Kennis’ observation, ETH could bounce back stronger as long as the flows and narratives maintain their momentum.
ETH ETF inflows have even been surpassing BTC flows over the last few days, and this is an interesting trend that has been picking up over the last few weeks.
As detailed in our earlier discussion, ETH’s ETF inflow was one of the standout performers in the market until the recent market downturn.
XRP Price Analysis and Potential Direction
XRP plunges below the $3.0 support level to trade at $2.9 level. According to market data, the asset has declined by 4.8% in the last 24 hours, 9% in the last seven days, and 13% in the last 30 days.
XRP’s RSI and MACD confirm its bearish momentum, with analysts anticipating a further decline to $2.7 once it falls below the $2.9 support level. As noted in our recent news brief, analyst Lingri has disclosed that the $3.1 and the $3.2 levels could be the perfect prices to re-enter the market.
