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  • Bitcoin bounces off support at $32,000 after falling sharply from levels above $38,000.
  • Ethereum prepares for a massive liftoff towards $3,000, but resistance at $1,500 must come down first.
  • Ripple breaks out toward $1, reminding investors that it never left the ‘game.’

In the last 48 hours, Ripple has led the rally in the cryptocurrency market, hitting highs of $0.822 for the first time in 2021. The upswing took place after Bitcoin cooled off from Friday’s upswing, in what was referred to as the ‘Elon Musk pumping effect’.

Ethereum, on the other hand, retreated from highs around $1,450 after cutting shot the expected run-up to $1,500. However, Peter Brandt has flipped bullish on ETH, saying that he anticipates a significant price change.

Consequently, last week’s darling, Dogecoin, failed to keep up with its annual rally, resulting in a significant correction. The token was also displaced from the top ten leading cryptocurrencies by market capitalization and currently holds at the 13th spot and trading at $0.04.

Bitcoin rebounds from critical support

Bitcoin soared to levels above $38,000 after speculators went crazy because Elon Musk endorsed the leading cryptocurrency. As covered last week, the founder of Tesla, the world-leading manufacturer of electric vehicles, insinuated that he had bought BTC and even changed his Twitter bio to read the digital asset.

While the rally was a welcomed gesture, Bitcoin corrected sharply to the significant support at $32,000. A minor recovery has seen Bitcoin become pivotal at $34,000. At the time of writing, BTC is doddering at $34,300, as bulls fight tooth and nail to overcome the hurdle at the 200 Simple Moving Average.

The Moving Average Convergence Divergence could soon validate a breakout if the MACD line (blue) crosses above the signal line. A 4-hour candlestick close above the 200 SMA will help validate the uptrend to $36,000.

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BTC/USD 4-hour chart

It is worth keeping in mind that the bullish outlook toward $36,000 will fail to materialize if the hurdle at the 200 SMA remains intact. In this case, selling pressure may increase, pushing Bitcoin under $34,000 support at $32,000 is the best bet to stop BTC from plunging to $30,000 again.

Ethereum is struggling to sustain the uptrend

Following the rejection from last week’s peak ($1,450), Ethereum dived under $1,300 but found support at $1,270. As mentioned, both speculators and traders believe that Ethereum is far from its global top. Thus, a rally is expected in the near term, elevating it to highs above $1,500.

For now, attention has been channelled toward pushing Ether above the 50 SMA on the 4-hour chart. Closing the day above this level would validate the uptrend past $1,400. A break above $1,500 could mark the beginning of a massive price action heading to $3,000.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

The Relative Strength Index must cross above the midline to show that buyers have the upper hand. If it fails to do so, ETH will likely drop to the 100 SMA, currently at $1,300. Notably, Ether recently bounced off support at $1,200, suggesting that further losses are not out of the picture yet.

Ripple eyes $1 as buying pressure soars

Ripple finally broke out of the consolidation we wrote about countless times in January. A 60% prediction made on Friday came to pass, with XRP rising significantly above $0.5. In the meantime, the cross-border cryptocurrency is trading above $0.72 amid an increased tailwind force for gains toward $1.

The least resistance path remains upwards, while higher support will help sustain the uptrend, preferably above $0.7. The 50 SMA widens the gap above the 100 SMA and the 200 SMA, adding credence to the bullish scenario.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

The RSI in the same timeframe is quite overbought, suggesting that a reversal is not a farfetched idea. Therefore, investors must proceed with caution because a correction may lead to the loss of some gains, especially if support levels at $0.7 and $0.5 fail to hold.