Crypto Market Update: Following the Rejection of Key Resistance, Bitcoin, Ethereum, and Ripple Turn Bearish

Since Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) were rejected at crucial resistance levels, the cryptocurrency market began the week cautiously. This caused short-term corrections and increased traders' and investors' bearish concerns.

After Encountering Resistance at $97,700, Bitcoin (BTC) Falters Below $94K.

The price of bitcoin dropped back to roughly $94,000 on Monday after failing to break above its critical resistance level at $97,700 on Friday. The rejection led to a nearly 3% decline over the weekend as bulls started to exhibit signs of exhaustion.

Weakening momentum is suggested by technical indicators. On the daily chart, the Relative Strength Index (RSI) has fallen to 60, leaving the overbought area above 70. Increased bearish pressure and a potential retest of the next support level, which is close to $90,000.

Bullish Scenario: Bullish sentiment could be rekindled with a breakout above the $97,700 resistance level, which would pave the way toward the psychological barrier at $100,000.

Bearish Scenario: The correction could get deeper if current levels are not maintained, with $90,000 serving as a crucial downside target.

Ethereum (ETH) Faces Pressure After Rejecting $1,861

After hitting strong resistance at its peak on Friday, around $1,861, Ethereum is now trading around $1,795. Since then, the digital asset has dropped by almost 1.87%, which is indicative of rising market apprehension.

The RSI is at 52, which indicates that market players are unsure. A prolonged decline below the 50-point neutral level might validate a more general downward trend.

Support Levels to Watch: ETH may drop even lower to $1,700, a psychologically important level. The next significant support at $1,449 could be revealed by a clear break below that.

Recovery Potential: The token may retest the crucial psychological threshold at $2,000 if bulls regain control and push ETH above the $1,861 resistance.

Ripple (XRP) Weakens Below 50-Day EMA, Risks Further Downside

After closing below the 50-day Exponential Moving Average (EMA) on Saturday at $2.20, Ripple (XRP) is still on a downward trajectory. By Monday, the token had dropped 2.26% over the weekend to about $2.14.

The current daily RSI of 47 suggests that as traders lose confidence, bearish momentum may be intensifying.

Downside Risks: The next significant support, if XRP keeps falling, is at $1.96. The correction might quicken if there is a break below this threshold.

Upside Potential: Conversely, if the price moves back above the $2.20 resistance, it may recover to its peak of $2.50 on March 24. If momentum continues to build, it may even rally to $3.00.

Market Outlook

All three of the main cryptocurrencies are exhibiting hesitancy as of early May, with short-term bearish technical signals outweighing bullish narratives. While traders wait for confirmation of the trend direction, caution is advised.

Key Takeaways

• Bitcoin (BTC) trades below $94,000; RSI suggests waning bullish momentum.
  
  
• Ethereum (ETH) hovers near $1,795; RSI indicates indecision.
  
  
• Ripple (XRP) remains under $2.20; RSI below 50 suggests bearish pressure.

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