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Is the correction phase finished?
The cryptocurrency market has shown significant price fluctuations over the past week following increased volatility in the cryptocurrency sector. Furthermore, major crypto tokens continue their struggle to maintain their respective value above crucial support levels.
Furthermore, the price of Bitcoin has seen a correction of 3.61% in the last seven days. Following in its footsteps, ETH price fell by 6.61%, while XRP price lost 4.96% during the same period, highlighting strong bearish sentiment in the sector.
Will the cryptocurrency industry see a bullish bounce over the next week amid increased price volatility?
Bitcoin Price Shows Bearish Price Action:
Despite the increased price volatility in the cryptocurrency sector, the market leader, BTC price, lost 3.47% in the last day and recorded a decline of 1.93% in 24-hour trading volume. Furthermore, it has registered a correction of 14.18% in the last 30 days.
TradingView: BTC/USDT
Furthermore, it has formed a symmetrical triangle and continues to trade within it, indicating uncertainty in future price action. Additionally, the 50-day EMA acts as resistance on the price chart, highlighting strong bearish sentiment in the cryptocurrency sector.
On the other hand, the technical indicator, MACD, shows a steady flat line in its 1D time frame, highlighting weak price action for the market leader in the crypto space. However, the averages show a bearish convergence, suggesting mixed sentiment in the cryptocurrency sector.
If the bulls regain momentum, the Bitcoin price will retest its symmetric triangle resistance trend line during the next week. Conversely, bearish price action could send the BTC token plummeting towards its crucial $60,000 support level.
Ethereum Fails to Break Out of Its Falling Channel Pattern:
The leader of altcoins, Ethereum price, has continued to trade in a descending channel pattern since mid-March, indicating growing investor disinterest in it. Furthermore, the delayed approval of the Spot EthereumETF by the Securities and Exchange Commission (SEC) was one of the main reasons for this bearish price action.
TradingView: ETH/USDT
The simple moving average (SMA) has consistently acted as resistance at ETH price chart, indicating a weak bullish influence in the cryptocurrency sector.
Furthermore, the Relative Strength Index (RSI) has been consistently trading below the midpoint, indicating growing investor disinterest in this altcoin. Furthermore, the averages show a bearish curve, suggesting negative price action in the near future.
If the market pushes the price above the important resistance level of $3,017, the bulls will regain momentum and attempt to break out of the descending channel pattern. However, if the bears continue to dominate the market, it will fall towards the low of $2,650 this month.
Ripple Token on the Verge of Failure:
THE XRP Price repeatedly fails to regain momentum, resulting in the Ripple token seeing a correction of 2.35% over the past day and around 5% over the past week. Furthermore, the Year-to-Date (YTD) return of XRP tokens is -17.95%, highlighting long-term bearish sentiment.
TradingView: XRP/USDT
The Moving Average Convergence Divergence (MACD) shows a steady decline in the histogram, highlighting increased selling pressure within the crypto space. On the other hand, the averages show bearish convergence in the 1D time frame, suggesting a negative outlook for the altcoin.
If the market undergoes a bullish reversal, the Wavy price will attempt to retest its $0.5340 resistance level during the next week. On the contrary, if the bears continue to maintain power, the Ripple token may fall towards its support level of $0.4790 breaking out of its triangle pattern.
Conclusion:
With the cryptocurrency industry ending this week on a bearish note, the chances of a bullish recovery during the coming week have increased. Conversely, the market could experience delayed bullish price action if BTC, ETH, and XRP prices fail to maintain their values above crucial support levels.