Bitcoin Recovers $77,000... Why Are Ethereum and XRP at Risk of Support Line Collapse?

▲ Bitcoin (BTC), Ethereum (ETH), XRP (XRP)/ChatGPT Generated Image ©

As major assets leading the virtual asset market experience a downward adjustment for two consecutive weeks, facing downward pressure, the leading cryptocurrency has shown a slight recovery, initiating a rebound. In contrast, other major altcoins are either blocked by resistance lines or show stronger bearish signals, with their directions diverging, drawing the attention of investors.

According to investment specialized media FXStreet on May 25th (local time), last week, Bitcoin (BTC) saw an approximate 1% decline, Ethereum an approximate 1.5% decline, and XRP (Ripple) an approximate 4% decline. Among these, BTC fell to around $74,300 (USD) during last week's adjustment but rebounded slightly on Monday, currently trading around the $77,200 mark. The current price sits just above the support level of the 50-day and 100-day Exponential Moving Averages (EMA) at around $76,800. However, it is significantly below the long-term indicator, the 200-day EMA, at $81,319, indicating limited overall upward momentum. On the daily chart, the Relative Strength Index (RSI) is at 47, remaining below the neutral line, and the Moving Average Convergence Divergence (MACD) also remains negative. This suggests that additional upward momentum is somewhat weakened, forming a sideways trading range. In case of a future rebound, $78,962 and $81,319 are expected to act as major resistance levels, while $76,883 and $74,487 are expected to serve as defense lines in case of a decline.

On the other hand, Ethereum continues its bearish bias, trading at $2,098 as of Monday. Currently, the 50-day, 100-day, and 200-day EMA values are all clustered between $2,220 and $2,500, and the price is below all these indicators, suggesting that the overall trend is under pressure. A short-term upward resistance level is formed around $2,138, which is the 23.6% Fibonacci retracement zone. The daily RSI hovering around 37 visually indicates that demand itself is very subdued rather than being in an oversold zone. The MACD also remains in negative territory, signifying a dominant selling sentiment. If it fails to break through the overhead resistance of $2,138 or the 50-day EMA of $2,221 and retreats, there is a risk of further decline to the psychological key support and horizontal floor of $2,000.

Finally, XRP also failed to escape its short-term bearish sentiment, showing a red decline marker at the $1.352 level on Monday, following last week's drop. XRP is currently trapped below major moving averages, with the upper boundary of the descending parallel channel at $1.398 and the 50-day EMA at $1.401 interlocking to form a short-term upward selling wall. Above that, the 100-day EMA at $1.471 and the 200-day EMA at $1.681 further strengthen the resistance structure in layers. The daily chart's RSI is currently hovering around 42, reflecting a contraction in buying interest, and the MACD also remains in negative territory, indicating that selling pressure dominates the market despite recent price stabilization. If downward pressure continues, buying forces are expected to attempt to build a defense at the horizontal support level around $1.300 to mitigate further losses.

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