- Bitcoin might face a 10% decline, Ethereum a 5% drop, and Ripple could rally up by 20%.
- Market volatility is at a near five-year low, suggesting a significant move could be around the corner.
The prices of leading cryptocurrencies Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) have been exhibiting lackluster performance due to the current market volatility drought. Market experts suggest this could lead to significant shifts in the cryptocurrency landscape.
Bitcoin’s volatility has reached a near five-year trough, even falling below gold, indicating that a potent move could be imminent, according to a study released by crypto research firm K33 on August 2nd. Bloomberg analyst McGlone suggests that this reduced volatility could favor a bullish market turnaround for Bitcoin.
Bitcoin’s price, at the time of writing, is witnessing a downward trajectory with a 26% decrease in its 24-hour trading volume. This downturn led to Bitcoin dropping below the 50-day Simple Moving Average (SMA), which now poses a resistance level at $29,581. The next support is anticipated above the 100-day SMA at $28,492.
Bitcoin’s price is entrapped between these moving averages, and its diminished volatility could signal favorable conditions for a bearish market. With increasing overhead pressure, Bitcoin might descend further, potentially breaching the 100-day SMA and possibly reaching the $27,256 support level.
However, a surge of new investors could catalyze a reversal, propelling Bitcoin’s price above the resistance confluence. A decisive daily candlestick close above the $31,462 range is necessary to confirm this bullish shift.
Ethereum is also experiencing a downward trend, with its price dropping after losing the support confluence between the 50- and 100-day SMAs around $1,854. The growing headwinds may push Ethereum’s price further down.
A rally by sidelined bulls could, conversely, reverse Ethereum’s fortune, prompting a 5% upswing to $1,953, or possibly even past the $2,023 barrier in an optimistic scenario. This would represent a nearly 15% growth from current levels.
Meanwhile, Ripple could be poised for a strong upward move as it achieves some degree of stability. Increased demand could fuel a rally, potentially leading Ripple to break the highs of around $0.826 set on July 19/20, representing a potential 20% increase.
Failure to enact a U-turn around the $0.684 support level might push Ripple’s price further down to the 50-, 100-, or even 200-day SMA at $0.587, $0.531, and $0.478 levels, respectively. This could erase gains made from the July 13 rally, reigniting a bearish outlook for the payment token.