(Akash Girimath – FXStreet)
– Bitcoin price underwent a massive sell-off on August 9 and is at the halfway point of the July 26 and July 30 rally.
– Ethereum price is likely to shed more before any meaningful upswing originates.
– XRP price steadily undoes gains to find a stable support level.
Bitcoin price is trying to undo the gains it witnessed over the last week and is currently at the midway point. This sell-off has caused Ethereum and Ripple prices to follow suit, pausing the rallies that altcoins were experiencing.
Going forward, things are likely going to cool down for BTC, potentially providing altcoins with an opportunity to attempt a recovery.
Bitcoin price loses its ground
Bitcoin price crashed 7.5% over the last 24 hours and is currently retesting the 200-week Simple Moving Average (SMA) at $22,877. A breakdown of this level and the 30-day Exponential Moving Average (EMA) at $22,737 will signal the start of the second leg down.
However, a minor upswing to $23,624 is likely to occur before a move to $21,140 or $21,115.
A daily candlestick close above the $24,565 resistance level will invalidate the bearish thesis for Bitcoin price. In such a case, BTC might attempt to revisit the $28,000 psychological level.
Ethereum price follows BTC into the ground
Ethereum price took a cue from Bitcoin price and has crashed 9.4% over the last 24 hours. This development is pausing as BTC hovers above the 30-day EMA and the 200-week SMA. Therefore, investors should be prepared for an eventual move to $1,466. However, this downswing could occur after a brief retest of the $1,761 level.
On the other hand, if Ethereum price manages to stay above the $1,730 support level, it will invalidate the bearish thesis. In such a case, ETH might revisit the $2,000 psychological level.
XRP price needs stable ground
XRP price is trying to patch its leaks after the fourth rejection at the $0.381 resistance level. This move is likely to push XRP price to the $0.340 support level. A breakdown of this level, in a highly bearish case, could push the remittance token down to the $0.287 to $0.311 demand zone.
This downswing would also collect the sell-stop liquidity resting below the equal lows formed at $0.326.
Regardless of the bearish outlook, a premature run-up could occur at $0.340. However, only a decisive flip of the $0.381 level into a support floor will invalidate the pessimistic outlook of Ripple.
In this situation, XRP price could attempt a quick rally to $0.439.