- Dogecoin rallies 450% in seven days to trade new all-time high of $0.45.
- Bitcoin bulls find it challenging to sustain the uptrend amid resistance at the 200 SMA.
- Ethereum holds between the 100 SMA support and the 50 SMA resistance on the four-hour chart.
- Ripple loses ground within a descending parallel channel following hurdles at $1.5.
The cryptocurrency market bled profusely at the height of the weekend session on Sunday. Bitcoin led the drop, extending the bearish leg from all-time highs marginally above $65,000 to price levels close to $51,000. Other significant crypto assets suffered alongside BTC, whereby Ethereum tested $2,000 before resuming the uptrend amid challenges.
The cross-border cryptocurrency Ripple also tumbled to $1.12 before rebounding toward $1.5. However, recovery has become an uphill battle leading to ongoing correction. Other cryptocurrencies such as Cardano and Binance Coin gravitated appreciably before making significant recoveries to their current levels.
Dogecoin continues to achieve new milestones irrespective of the correction across the market. According to CoinGecko, the meme coin is up over 600% in the last 30 days, 450% in seven days, and 37.5% in the previous 24 hours.
Bitcoin Struggles With Recovery to $60,000
Bitcoin embraced support marginally above $51,000 after the flash drop on Sunday. Before the volatility heightened in the market, Bitcoin had rallied above $65,000. The upswing is believed to have been triggered by the Coinbase listing craze.
The price drop to $51,000 has been attributed to power outages in China which interrupted mining operations, leaving the network unstable.
Meanwhile, Bitcoin rebounded toward $60,000 but has settled above $57,000. Price action is sluggish at the time of writing, with resistance at $58,000 highlighted by the 200 Simple Moving Average (SMA) on the four-hour chart.
A break past this seller congestion zone could catapult BTC beyond $60,000. Besides, closing the day above $57,000 would add credibility to market stability.
BTC/USD Four-Hour Chart
On the other hand, it worth noting that closing the day under $57,000 may continue putting tremendous pressure on crucial support levels. Losing the anchors at $54,000 and $51,000 may lead to a breakdown below $50,000.
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Ethereum Treads on Shaky Ground
Ether has a market value slightly under $2,250 at writing. This follows recovery from Sunday’s dip to $2,000 and later a rebound to $2,280. The pioneer smart contract token’s upside has been limited under the 50 SMA, explaining the hampered recovery.
On the downside, immediate support is accorded to the cryptocurrency by the 100 SMA at $2,000 on the four-hour chart. The Moving Average Convergence Divergence (MACD) indicator hints at the path of least resistance reaming south in the near term.
Moreover, if the anchor at $2,200 is shattered, Ether may begin another spiral and perhaps extend the bearish leg under $2,000. Massive losses would be triggered below this level and negatively impact the progress made since the beginning of April.
ETH/USD Four-Hour Chart
Read More: Is Ethereum a Good Buy?
Ripple Downtrend Steadies
Ripple tested support at $1.12, preventing the bearish leg from extending to $1. A reflex rebound occurred, sending the cross-border cryptocurrency above $1.5, but the 50 SMA capped price movement.
Bearish pressure has become more apparent as XRP continues to lose the ground recently reclaimed. Ripple trades at $1.38 while facing acute resistance at $1.4. The price also dances within the confines of a descending parallel channel. Its middle boundary is the immediate support and must hold to avoid losses from extending to $1.12.
If push comes to shove and overhead pressure rises, Ripple will breakdown under the channel’s lower edge, asserting more pressure on the support at $1. Note that XRP is not out of the woods based on the Relative Strength Index (RSI) on the four-hour chart. The rejection from the midline means that the downward momentum may surge in the short term.
XRP/USD Four-Hour Chart
Closing the day above the middle layer of the channel would prove that Ripple’s market stability is intact. A breakout above the channel and, by extension, the 50 SMA may trigger more buy orders, with investors trusting in the uptrend toward $2.
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