Retail Investors Have All Left! Top Three Cryptocurrencies Walk a Tightrope in an Empty Market

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

Major coins leading the cryptocurrency market are finding stability above short-term support levels, but amid retail investor apathy and a sharp decline in open interest, they are struggling to preserve weekly gains and continue a precarious balancing act.

According to investment media outlet FXStreet on February 27 (local time), major altcoins including market leader Bitcoin (BTC), Ethereum (ETH), and XRP are cautiously seeking a bullish reversal despite an overall downtrend. Bitcoin is hovering around $67,000, Ethereum is trading slightly below $2,000, and XRP is changing hands near $1.40, showing limited stability.

The biggest factors weighing on the market are weak retail participation and fading momentum in the derivatives market. Bitcoin futures open interest has plunged from $94.12 billion last October to $44.34 billion currently. Ethereum and XRP have also seen significant contractions in open interest compared to their all-time highs, recording $25.94 billion and $2.3 billion respectively, underscoring the lack of conviction needed to drive a trend reversal.

Technical indicators are sending mixed signals. Bitcoin remains firmly in a bear market, trading below its 50-day, 100-day, and 200-day exponential moving averages (EMAs) of $75,799, $83,425, and $91,005, respectively. The Relative Strength Index (RSI) has fallen to around 41, suggesting short-term downside pressure, but subtle bullish momentum is also emerging as the MACD line remains above the signal line and the histogram expands. A breakout above the psychological resistance at $70,000 could open the door to $72,271, while a break below the $66,500 support level risks a pullback to $60,000.

Ethereum is trading below its key resistance at $2,000, confirming a short-term bearish bias. Although the RSI remains at 41, indicating selling pressure, the expanding green histogram on the MACD suggests building upward momentum. A daily close above $2,000 could pave the way toward $2,148 and then the 50-day EMA at $2,362. On the downside, a drop would likely retest support at $1,800.

XRP’s situation appears somewhat heavier. Trading around $1.40, XRP remains below all major EMAs, while the RSI at 41 reflects a pronounced bearish trend. Although the MACD remains below the signal line, signs of fading downside momentum are emerging. If XRP successfully holds above $1.40 on a daily closing basis, a rebound toward $1.54 could be possible. Conversely, if it falls into oversold territory, further correction toward $1.31 may be unavoidable.

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