• Bitcoin price hovers around $93,400 on Wednesday after declining 6% since the start of the week.
• Ethereum price is approaching its weekly resistance of $3,454; a close above this level signifies a potential rally ahead.
• Ripple price closed below the crucial support level of $1.40 on Tuesday, indicating a likely pullback in the near future.

As of Wednesday, Bitcoin (BTC) is hovering around the $93,400 mark, having suffered a 6% decline since the beginning of the week. The current technical indicators for BTC suggest that this price correction is in play, largely driven by a bearish divergence noted in the Relative Strength Index (RSI). Meanwhile, Ripple (XRP) followed a similar trend and closed below a significant support level on Tuesday, hinting that a pullback may be imminent. In contrast, Ethereum (ETH) displays a more optimistic outlook, as it nears a critical resistance level; if it manages to close above this threshold, a rally could be on the cards.

Bitcoin Price Momentum Indicates Bearish Divergence

Following a remarkable surge where Bitcoin reached an all-time high (ATH) of $99,588 on Friday, the cryptocurrency has begun to face a corrective decline. As of Tuesday, BTC dipped by 7%, falling to a low of $90,791, with the price hovering above $93,400 on Wednesday.

If BTC’s pullback persists, it may extend further toward retesting its pivotal psychological level of $90,000. A successful close below this threshold could lead to a deeper decline, testing subsequent support at the $85,000 level.

Additionally, the RSI indicator reinforces the notion of a price pullback illustrated on the daily chart. Despite the higher high recorded in BTC’s price last Friday, the RSI for the same timeframe depicted a lower high. This creates a bearish divergence, a phenomenon frequently associated with trend reversals or short-term corrections in price movements.

BTC/USDT daily chart

If Bitcoin can secure support around the $90,000 mark and rebound effectively, there might still be a chance of rallying back to its ATH of $99,588.

Ethereum Price Poised for a Rally If It Closes Above $3,460

Ethereum’s price experienced rejection upon approaching its weekly resistance level set at $3,454, leading to a decline of 2.63% on Tuesday, where it found support around the 61.8% Fibonacci level, established from its March peak of $4,093 to its August bottom of $2,108, situated at $3,335. Trading around $3,420 on Wednesday, ETH is once again nearing its resistance line.

A successful break and closure above the $3,454 mark could propel ETH’s rally by potentially as much as 16%, targeting the psychologically significant $4,000 threshold.

The RSI on the daily chart hovers around 64, comfortably above the neutral zone of 50, indicating that bullish momentum is gaining traction while remaining far from overbought conditions.

ETH/USDT daily chart

Conversely, if Ethereum fails to close above the $3,454 weekly resistance and instead closes below $3,330, it may retrace to test the significant support level of $3,000.

Ripple Price Faces Downward Pressure, Closing Below Key Support

Ripple’s price struggled and closed below the critical support level of $1.40 on Tuesday, following a commendable rally of nearly 36% the week prior. As of Wednesday, XRP hovers around $1.43, seeking to find its footing.

Should XRP break below the $1.40 line, the decline could potentially reach and retest the 50% price retracement level, calculated from its April 2021 high of $1.96 to its June 2022 low of $0.28, pinpointed at $1.12.

Moreover, the RSI currently stands at 82, indicating overbought conditions and highlighting an increasing likelihood of a correction. Should the RSI make a movement out of this overbought zone, it would signal a more definitive pullback.

XRP/USDT daily chart

Conversely, if Ripple manages to close above the $1.40 level, it could initiate an upswing to retest its three-year high of $1.96 achieved back in April 2021.

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