Bitcoin, Ethereum, XRP Technical Analysis: Volatility Expected as US Election Approaches

Bitcoin’s price closed positive last week, showing positive momentum near record levels. In the short term, price movements suggest consolidation, but the long-term trend signals the potential for another upward move. Rising institutional demand, notably through ETFs, supports this outlook, with positive inflows exceeding $500 million this week. Data from Coinglass shows net inflows increasing over recent days, with Friday seeing $401.20 million in inflows—up significantly from Thursday’s $187.80 million.

Bitcoin’s price stability at these record levels and rising inflows indicate potential upward movement. Additionally, the upcoming U.S. election on November 5 will influence the crypto market, as election-related uncertainty may drive volatility. Key announcements following the election could further impact cryptocurrency trends.

On the other hand, Ethereum‘s price is consolidating at a support level around $2,400. A break below this level could initiate downward momentum. This bearish pressure is supported by CryptoQuant’s Ethereum Coinbase Premium Index. This index is trading below the neutral level, indicating weakness, as shown in the chart below. This index measures the price gap between Coinbase Pro and Binance and serves as a key metric for assessing the behaviour of large wallet investors. The index is at its lowest since June 2024, signalling potential price pressure. If this downward trend persists, Ethereum’s price might continue to decline.

Similarly, XRP is consolidating at long-term support levels, showing signs of price weakness. This weakness is further supported by news that the U.S. federal government is investigating Tether for potential sanctions violations and breaches of anti-money laundering regulations. Despite these fundamental developments for XRP, its price remains weak and uncertain as it awaits a more precise direction.

Bitcoin (BTC) Technical Analysis

Bitcoin Weekly Chart – Descending Broadening Wedge Inside Cup Pattern

Bitcoin’s weekly chart shows the formation of a cup pattern from 2021 to 2024. The price is approaching this pattern’s resistance line and appears poised for a breakout. The formation of a descending broadening wedge within the edge of this cup pattern suggests an upside breakout. Additionally, the bottom line of the descending broadening wedge intersects with the cup pattern, further highlighting bullish strength. A breakout from this cup pattern could take prices to around the $100,000 level. This target is derived from the resistance line extending from the highs of March 2021.

Bitcoin Daily Chart – Descending Broadening Wedge Breakout

The descending broadening wedge pattern on the weekly chart is also observed on the daily chart. The price is consolidating near the edge of this pattern, and a breakout from here could trigger a strong upward move. Last week’s close was above this line, indicating bullish pressure. The price remains above the 50- and 200-day SMAs, highlighting bullish potential. Over the past few days, consolidation has brought the RSI to a mid-level, suggesting the price may rally from this support.

Ethereum (ETH) Technical Analysis

Ethereum Weekly Chart – Triangle Formation

Ethereum’s price consolidates within a triangle formation on the weekly chart. This triangle forms the boundaries between the $2,250 and $3,759 levels. A break of either level will signal the next directional move for Ethereum. The RSI shows that the price is below the mid-level, indicating ongoing pressure on Ethereum’s price. Moreover, the price is consolidating near the support line of this triangle, suggesting that a break below $2,250 could trigger downward momentum for Ethereum.

Ethereum Daily Chart – Bearish Pressure

Bearish pressure on Ethereum is also evident on the daily chart. The black dotted line at $2,130 represents a key support level. A break below this level could trigger further downward momentum. The price currently trades below the 200-day SMA, indicating a bearish trend. Additionally, the RSI on the daily chart is below the mid-level, suggesting the potential for further downside in Ethereum’s price. A break below $2,130 would confirm this bearish outlook.

Ripple (XRP) Technical Analysis

XRP Weekly Chart – Consolidation in Triangle

XRP is consolidating at a long-term support area under bearish pressure. The 2018, 2021, and 2023 peaks were quickly reversed, with the price trending lower following these historical highs. Currently, the price is trading around the red trend line near the $0.40 level. The upper resistance trend line stretches from the 2022 and 2023 highs and shows resistance around $0.65. This trend line is referred to the red dotted trend line. The price is consolidating between the $0.40 and $0.65 levels and looks for next direction.

XRP Daily Chart – Market Uncertainty

The daily chart for XRP shows price consolidation. Buyers are reversing each low higher, while sellers are reversing each peak around $0.65 lower. The RSI, which does not indicate any extreme levels on either side, mirrors these fluctuations. The price is consolidating around the 50- and 200-day SMAs, which do not indicate a clear direction. These fluctuations reflect market uncertainty as it awaits the next direction.

Conclusion

In conclusion, the cryptocurrency market shows a mixed outlook across key assets. Bitcoin appears poised for an upward breakout, supported by institutional solid inflows and favourable technical patterns. This breakout could take Bitcoin to reach $100,000 levels.

Meanwhile, Ethereum faces bearish pressure, with price consolidating at support and indicators signalling a potential downside, mainly if it breaks below critical levels. Similarly, XRP remains in a consolidation phase with weak momentum, affected by regulatory scrutiny in the broader crypto space and a lack of directional solid cues. With the U.S. election approaching, the crypto market may experience heightened volatility, further influencing price trends across these major cryptocurrencies.