Bitcoin Teeters on 50-Day SMA Support as Bulls Show Signs of Exhaustion; XRP Risks Deeper Slide if Cloud Support Fails
Bitcoin is once again testing a critical support level, and the outcome could shape the next major price move for the leading cryptocurrency.
As the saying goes, “Once is a chance, twice is a coincidence, and a third time makes a trend.” Right now, that wisdom is highly relevant for bitcoin (BTC), which has dropped back to its 50-day simple moving average (SMA) for the third time this month.
On the previous two occasions, the 50-day SMA acted as a reliable floor, helping BTC rebound higher. The current retest offers an opportunity for bulls to establish a firm upward trend fueled by this key technical level. However, if the support finally gives way, it could trigger intensified selling pressure, pushing prices below the psychological $100,000 threshold.
At present, bears seem to be gaining the upper hand, with signs of waning bullish momentum. The bounces from the 50-day SMA have been noticeably weaker. The first test on June 5 saw BTC jump from around $100,500 to over $110,000. In contrast, the second retest on June 17 resulted in only a modest recovery from $103,000 to $109,000.
Adding to the cautious outlook is last week’s Doji candlestick formation, which signals market indecision and potential buyer fatigue above $100,000. To reignite short-term bullish sentiment, analysts say BTC needs to break convincingly above $110,000 on strong trading volumes.
XRP Mirrors DOGE’s Bearish Setup
Meanwhile, XRP (XRP) is on precarious footing as it hovers near the bottom edge of the Ichimoku cloud—a technical indicator that tracks momentum and trend shifts. Developed in the 1960s by a Japanese journalist, the cloud framework signals bullish trends when prices trade above it and bearish ones when prices fall below.
A drop beneath the cloud often serves as a warning for traders to consider selling or shorting, especially if other indicators confirm the negative outlook. Dogecoin (DOGE) experienced such a bearish cross earlier this month, leading to further price declines.
XRP’s technicals are flashing red flags. Its 50-day SMA has already slipped below the 200-day SMA, forming a so-called “death cross,” which is widely viewed as a bearish signal. A decisive move below the Ichimoku cloud could clear the path for XRP to fall beneath $2.
Charts currently indicate support around $1.60, which represents the lows from early April. Other altcoins, including DOGE, ADA, and LINK, have recently slipped below their respective Ichimoku clouds, resulting in notable price losses.
