Bitcoin, Ethereum, and XRP Show Cautious Recovery Amid Downside Risks

▲ Bitcoin (BTC), Ethereum (ETH), and XRP / ChatGPT-generated image ©

After undergoing a steep market correction, leading cryptocurrency Bitcoin (BTC) and other major digital assets are cautiously attempting a rebound from key support levels. However, lingering downside pressure has not been fully eliminated, warranting heightened caution from investors.

According to FXStreet on February 25 (local time), Bitcoin, Ethereum (ETH), and XRP (Ripple) are showing a tentative recovery as of Wednesday following a brutal sell-off earlier this week. Bitcoin is retesting a previously broken key support zone, while Ethereum and XRP are also rebounding from important defensive levels. Nevertheless, mixed technical indicators suggest that the risk of further declines remains intact.

Bitcoin broke below its lower range support at $65,729 last Monday and fell to an intraday low of $62,510 on Tuesday. It is now striving to reclaim the breakdown level. If it fails to close above $65,729 on a daily basis, there is a risk of a further plunge toward the psychological support at $60,000. The Relative Strength Index (RSI) has rebounded from oversold territory, registering 36 and indicating weakening bearish momentum, while the Moving Average Convergence Divergence (MACD) maintains a bullish crossover. A successful hold above $65,729 could open the path toward $71,746.

Ethereum has continued its downward trend since mid-January, plunging 5.5% on Tuesday to test the key psychological support at $1,800. As of Wednesday, it has staged a short-term rebound to $1,916. However, if it fails to overcome the downtrend and closes below $1,800 on a daily basis, an extended slide could follow through $1,747 down to $1,669. Similar to Bitcoin, technical indicators are sending conflicting signals of easing selling pressure and a bullish crossover. Should the upward momentum persist, Ethereum may target the upper resistance at $2,149.

XRP broke below the lower trendline of a falling wedge pattern last Monday and came under threat near its weekly support at $1.30. It is currently attempting a modest recovery by retesting the broken trendline. If it faces rejection near this level and loses the $1.30 support, it could plunge toward its February 6 low of $1.11. Conversely, if the former lower trendline is successfully established as new support, a meaningful rebound rally toward the key psychological resistance at $1.50 may unfold, the outlet analyzed.

*Disclaimer: This article is for investment reference purposes only and does not accept responsibility for any investment losses incurred based on its content. The information provided herein should be interpreted for informational purposes only.*