After reaching a high of USD 25,211 in August, the price of Bitcoin has formed a falling wedge, which usually precedes an upward move. The number of Ethereum addresses recently reached a 10-month high, indicating that investors remain interested in Ether despite its dropping value.
Bitcoin (BTC), currently trading in a falling wedge pattern, may end its price correction after a final drop.
The value of Ether (ETH) remains above the USD 1,260 horizontal support zone but may have ended its correction.
The price structure of XRP, coupled with its bearish divergence, indicates a decline in the short term.
The Price of Bitcoin Might Have a Further Decline
The pioneering cryptocurrency has formed a falling wedge after reaching a high of USD 25,211 on August 15th. The bearish move caused the price to drop to a low of USD 18,125 on September 21st. That level is slightly above the yearly low of USD 17,622 that it hit on June 18th.
Since the falling wedge represents a bullish pattern, the price of Bitcoin may eventually move above it.
The 6-hour relative strength index (RSI) is bearish, as it has dropped below its rising support line and below 50.
The above situation makes a bearish move toward the support line of the wedge likely, leading the price to test annual floors again.
The Price of Ether Holds a Crucial Support Level
Ether has fallen into a falling parallel channel after reaching a high of USD 2,030 on August 13th. The bearish move caused the price to hit a low of USD 1,243 on September 21st.
Since falling parallel channels usually contain price correction movements, Ether may eventually break out of it. It has remained above its support zone, although it has not started a significant bearish move.
A rise above the middle of the channel would signal that the bearish move is over. Besides, there would possibly be a rise in the price of Ether above its resistance zone.
Meanwhile, a rejection from the middle of the channel would suggest that Ether might fall toward the USD 1,050 area.
The number of addresses recently reached a 10-month high while the price of Ether remained very close to its all-time high. That indicates that investors are still interested in the crypto asset despite the drop in its value.
Following a Double-Top Pattern, XRP May Return to USD 0.38
On September 22nd, the price of XRP exceeded a previous rising parallel channel after reaching its lows on June 18th. The following day, it hit a high of USD 0.56, a rise of 42% in only two days.
The price of XRP reached a slightly lower high of USD 0.55 on October 9th, following a short-term pullback. That created a double-top pattern, considered a bearish reversal, alongside the above USD 0.56 high.
Besides, the double-top pattern came together with a bearish divergence from the daily RSI, which usually precedes downward reversals. On October 10th, XRP formed a bearish recovery candlestick, strengthening the possibility of a pullback.
In case of a bearish move, the nearest support area would be USD 0.44. That 0.5 Fibonacci retracement coincides with the resistance line of the previous channel. If that area fails to support the value of XRP, the following support will be at USD 0.38.
By Alexander Salazar
