Crypto News: BTC and XRP Weekly Charts Seem Bullish but ETH Could Drop Another 21%

This decline has been partially cushioned by the resilience of Bitcoin (BTC) as the top crypto has retreated by just 3.3% during this period.

However, top altcoins like Ethereum (ETH) and Solana (SOL) have experienced much sharper drops in what could be seen as the crypto version of a flight-to-quality, meaning that most of the capital is flowing to BTC while the market is in turmoil.

Although market sentiment has soured recently, both Bitcoin (BTC) and XRP (XRP) weekly charts show bullish structures that point to upcoming all-time highs this year.

However, this is not the case for Ethereum (ETH) as the top smart contracts platform now needs to overhaul its infrastructure to stay competitive amid the rise of top rivals like Solana, BNB Chain, and Sui.

Bitcoin Stops at Key Fibonacci and is Still on an Uptrend

Bitcoin has made four consecutive higher highs in the past two years and the price has multiplied by five times during that period as crypto adoption has accelerated during this period.

The weekly chart shows that BTC has actually embarked on a parabolic move where price surges are much more powerful in magnitude compared to drawdowns.

The top crypto made a double-top at around $108,000 and has been retreating since then. However, the price has held above a key Fibonacci retracement level in the past 4 weeks. The $90,000 level seems like the most relevant psychological resistance for BTC in the mid-term.

If the price breaks above this area, the odds of a retest of its all-time highs would increase dramatically.

Momentum indicators are currently giving positive signals as the Relative Strength Index (RSI) has turned its course and seems headed to retest the signal line. Meanwhile, the MACD’s histogram has flashed its first light red bar in weeks.

This means that negative momentum is fading. However, this week has not yet ended so traders should keep an eye on how this plays out before jumping to conclusions.

Huge Gains Ahead for XRP If It Breaks its Bull Flag

XRP has been one of the best-performing tokens of the year in the top 5 as positive developments in the legal front and the launch of a stablecoin for its ecosystem have propelled its market value.

XRP retested its all-time highs recently but rejected a move above this important threshold. Instead of shedding most of its post-election gains, the market has been consolidating and a bull flag has formed as a result.

This pattern indicates that market participants are waiting for the next catalyst before deciding where the price will be heading. However, flag patterns tend to resolve in the direction of the previous trend, which is an uptrend in this case.

If a break above $3.4 occurs, XRP’s outlook would improve dramatically and it could deliver sizable gains in just a few months as the rally would accelerate.

How high can XRP go? Hard to tell but the flag’s pole tends to be used as a measure. In that case, a long-term target XRP could be set at… $19 per coin. Too much? Too high? Keep in mind that XRP once surged from $0.12 to $3.4. So, not an impossible run.

ETH Seems Poised to Retest a Key Support

After consolidating for quite a few years, Ethereum (ETH) has finally broken its lower trend line, meaning that market participants share a bearish outlook for the token in the long term.

Strong competition in the smart contracts space has contributed to depress Ethereum’s valuation. Although it is still the most important network by total valued locked (TVL), stablecoin balance, developer interest, and other similar metrics, its scaling issues keep plaguing its reputation and market value.

This bearish breakout has now depressed ETH’s outlook and could push its price to the nearest support area at $1,550, meaning a 21% downside potential from current levels.

The Pectra upgrade could change Ethereum’s outlook as it is now scheduled to be implemented at the end of this month. If the network manages to reduce its fees significantly, this could improve ETH’s performance.

However, if this upgrade fails to live up to the market’s expectations, ETH will likely flunk and underperform its peers, even if the bullish cycle resumes.