Major Breakout or Deep Correction Coming Next?
The cryptocurrencies may deliver substantial gains, but only under the right conditions.
The past week has been quite turbulent for Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), as they all ultimately posted losses during that period.
Analyst Ali Martinez believes these digital assets have reached pivotal points, where their next major move will likely depend on key technical structures and crucial levels. Here’s what market participants need to monitor.
BTC and ETH
The primary cryptocurrency currently trades around $82,500 (per CoinGecko) after briefly tumbling below $80K last week. Martinez said the important level now is $81,000, which marks the lower boundary of the asset’s daily rising channel.
He maintained that if buyers defend it, BTC could rebound to the structure’s mid-range at $84,000 and then to the upper barrier at $86,500. At the same time, Martinez warned that a break below $81,000 could result in a deeper decline toward $76,000.
The analyst then shifted his attention toward ETH, arguing that it has a similar test at $2,350 (the support line of a right-angled ascending broadening pattern).
Martinez thinks that a bounce from that mark could push the asset’s price toward $2,700 or even the $3,000 psychological zone. On the other hand, he added that a daily close below $2,350 could open the door to a crash to about $2,000. As of this writing, ETH is worth roughly $2,440, which supports the bullish scenario.
XRP’s Potential
Ripple’s cross-border token has lagged the market’s leaders over the past week, down 7% and currently trading near $1.32. Martinez said he is now monitoring the $1.25 level, as holding above it could complete the right shoulder of a potential inverse head-and-shoulders pattern on the 3-day chart.
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However, that’s not all XRP would need to do to post a decisive breakout. The analyst maintained that the resurgence should be combined with a sustained close above $1.56, which could set the stage toward a move to $2. From the bearish perspective, losing $1.25 might result in a drop to $1.
Shortly after, the analyst assumed XRP had bottomed out. He based his theory on the fact that transaction volume on the XRP Ledger exploded several hours ago as the token’s price hovered around the $1.25 support.
“The total dollar value of coins transferred on-chain skyrocketed to $49.70 billion, coinciding with the rebound that is now taking place. This surge in on-chain activity around such a critical support level suggests that $1.25 could mark the bottom,” Martinez explained.
In conclusion, the analyst doubled down on his thesis that as long as this support holds, XRP could be on track for a rally toward $2.
