Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) prices recovered slightly at the time of writing on Monday after correcting by over 7%, 14%, and 7%, respectively. The top three cryptocurrencies are nearing key support levels, and if they hold, could consolidate or extend their recovery in the upcoming days.
Bitcoin recovers after a massive correction
Bitcoin price closed below the midpoint of a horizontal parallel channel at $87,787 on Sunday, following a 7.4% correction last week. At the time of writing on Monday, BTC recovers slightly, nearing this broken level.
If BTC breaks and closes above $87,787 on a daily basis, it could extend the recovery toward the upper boundary of the horizontal pattern at $90,000.
However, the Relative Strength Index (RSI) on the daily chart is 39, below the neutral 50 level, indicating bearish momentum. For the recovery to be sustained, the RSI must move above the neutral 50 level. Traders should remain cautious, as the Moving Average Convergence Divergence (MACD) showed a bearish crossover last week and has remained intact, suggesting a downward move.
However, if BTC corrects, it could extend the fall toward the lower consolidation boundary at $85,569, which coincides with the 78.6% Fibonacci retracement level.
Ethereum nears key support level
Ethereum price closed below the daily support at $3,017 on Tuesday and declined 5.5% through Sunday. At the time of writing on Monday, ETH trades around $2,852, near the key support at $2,749.
If the 61.8% Fibonacci retracement level at $2,749 holds, ETH could recover toward the daily resistance level at $3,017.
However, traders should be cautious, as Bitcoin, Ethereum’s RSI, and MACD showed signs of bearish momentum.
On the other hand, if ETH closes below $2,749, it could extend the correction toward the November 21 low at $2,623.
XRP rebounds slightly after retesting at daily support at $1.83
XRP price has corrected by more than 12% over the last three weeks since early January, retesting the daily support at $1.83 on Sunday. At the time of writing on Monday, XRP is rebounding slightly, trading around $1.87.
If the daily support at $1.83 holds, XRP could extend the recovery toward the next daily resistance at $1.96.
However, like Bitcoin and Ethereum, XRP’s momentum indicators (RSI and MACD) on the daily chart still support a bearish view.
Conversely, if XRP closes below the daily support at $1.83, it could extend the decline toward the December 19 low of $1.77.
