Bitcoin, Ethereum, XRP Forecast: BTC Continues Downtrend Amid Declining DeFi Volumes

Key Insights:

• Bitcoin finding support near 200 moving average, support at $25,800; resistance at $28,500.
• Ethereum price has generated a “death cross”, support at $1,500; resistance at $1,740.
• XRP trades well under the 50 and 200 moving averages, support at $0.46; resistance at $0.53.

Bitcoin, Ethereum and XRP Forecast Video for 12.10.23

Leading cryptocurrencies continued to ease in Thursday’s Asian session amid declining DeFi liquidity, hotter than expected inflation data out of the United States on ongoing geopolitical tensions in the Middle East. Total value locked (TVL) in DeFi protocols fell to $36.6 billion Wednesday according to data from DefiLlama, its lowest level in more than two years. Crypto investors regularly use this metric to gauge the sentiment and activity of proof-of-stake (PoS) blockchains like Ethereum. On the data front,  the U.S. Producer Price Index (PPI) for September — a measure for wholesale inflation — came in at 2.2%, ahead of the 1.6% figure analysts had forecast. Elsewhere, investors remain on edge about escalating tension in the Israel – Hamas conflict as Israeli troops prepare for a large-scale ground offensive.

Below, we identify important chart levels to watch in Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).

Technical Analysis: Bitcoin, Ethereum and XRP

Bitcoin

Although Bitcoin’s price trades below a wedge pattern, it appears to be finding support from the 200 moving average. However, volumes remain low, increasing the likelihood of volatility-driven price fluctuations. A close back above the wedge pattern’s lower trendline could spark a rally to its upper range around $28,500. Alternatively, a breakdown at these levels could lead a decline to support at $25,800.

Ethereum

Ethereum’s price remains well below the lower trendline of an ascending triangle. Moreover, the 50 moving average recently crossed below the 200 moving average, generating a “death cross” — an ominous technical signal indicating lower prices. Further downside could see falls all the way down to the psychological $1,500 support level. However, a recovery above the triangle’s lower trendline could see bulls make a run towards its opposite side around $1,740.

XRP

XRP also trades substantially below the 50 and 200 moving averages on very low volumes. Although these indicators haven’t crossed to create a death cross yet, they look poised to do so within the next few trading sessions. Ongoing selling at these levels could see bears drive price down to the $0.46 cent area where it should find support from a multi-month horizontal trendline. A reversal back to the upside could see a retest of the bottom trendline of an ascending triangle that has flipped from an area of support into an area of resistance at around $0.53.