- Bitcoin price hovers around $93,000 on Monday after rallying 9.53% the previous day.
- Ethereum price found support around the $2,125 level; a recovery on the cards.
- XRP closes above its daily resistance of $2.79, hinting at further recovery.
Bitcoin (BTC) price hovers around $93,000 on Monday after rallying 9.53% the previous day. Ethereum (ETH) and Ripple (XRP) prices followed BTC’s footsteps and rallied nearly 14% and 35% on Sunday. This spike in prices was triggered by Donald Trump’s announcement on his Truth Social platform of a US ‘Crypto Strategic Reserve’, including Bitcoin (BTC), ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), aiming to boost America’s crypto leadership.
Bitcoin bulls recover from their recent downfall
Bitcoin price declined from Monday’s high of $96,500 to Friday’s low of $78,258 last week. However, it recovered 11.50% during the weekend, closing above $94,270 on Sunday. At the time of writing on Monday, it hovers around $93,000.
If BTC continues its recovery, it could extend the rally to retest its next resistance level at $100,000.
The Relative Strength Index (RSI) on the daily chart reads 48 after bouncing off its oversold levels last week, indicating mild signs of strength. For the bullish momentum to be sustained, the RSI must trade above its neutral level of 50.
BTC/USDT daily chart
However, if BTC declines and closes below the $90,000 support level, it could extend its decline to retest its $85,000 daily support.
Ethereum is poised for recovery following the close above $2,359
Ethereum price found support around its $2,125 level on Saturday and rose 13.56%, closing above its daily resistance of $2,359 the next day. At the time of writing on Monday, it trades around $2,400.
If ETH continues its recovery, it could extend the rally to retest its next resistance level at $3,000.
The RSI on the daily chart reads 42 after bouncing off its oversold levels last week, indicating mild signs of strength. For the bullish momentum to be sustained, the RSI must trade above its neutral level of 50.
ETH/USDT daily chart
On the other hand, if ETH declines and closes below $2,125, it could extend the decline to retest its weekly support level of $1,905.
Ripple bulls could target the $3.40 level
Ripple price found support around its daily level of $1.96 on Friday and rallied 37% in the next two days, closing above its daily resistance at $2.79. At the time of writing on Monday, it trades around $2.79.
If the daily level at $2.79 holds as support, XRP will extend the rally and retest its January 16 high of $3.40.
The RSI on the daily chart reads 57 above its neutral level of 50, indicating strong bullish momentum.
XRP/USDT daily chart
However, if XRP fails to find support around $2.79, it could extend the decline to retest its next support level at $1.96.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
