Bitcoin (BTC) and XRP are both experiencing significant technical developments, with Bitcoin now testing the crucial $88,800 support level after breaking below a key trendline, while XRP approaches the formation of a death cross, indicating potential further declines.
Bitcoin’s price fell below a key trendline on Monday, which had been connecting price lows from mid-April. This trendline break has raised concerns among traders, as it signals the possible end of the recent bullish momentum. Bitcoin is now eyeing $88,800 as a critical support level, which has been an important price point for the cryptocurrency in recent weeks. If this support fails to hold, Bitcoin could face a deeper correction, with the next key level to watch being $85,000.
Should Bitcoin manage to regain strength above the Ichimoku cloud, it may signal a continuation of the uptrend toward the $95,000 mark. However, if the current downward trend continues, Bitcoin could experience further weakness.
XRP Approaches Bearish Death Cross as Momentum Wanes
XRP is also showing signs of a potential trend reversal. The cryptocurrency has recently fallen below its 50-day simple moving average (SMA) and is now approaching a death cross, a bearish indicator that occurs when the 50-day SMA crosses below the 200-day SMA. This pattern is often a signal of a sustained downtrend, and XRP’s price action suggests further downside could be in store.
The formation of a death cross could lead XRP to test key support levels, with $1.05 and $1.00 acting as potential areas of support. While the death cross is widely recognized as a bearish signal, its predictive power is not foolproof, and some assets may experience a rebound before fully confirming the pattern.
As Bitcoin and XRP navigate these critical technical levels, traders will remain cautious, closely watching for any breakouts or further declines that could shape the future direction of these assets.
