- Bitcoin struggles as Powell’s speech at the Jackson Hole Symposium approaches, losing its daytime profits.
- Ethereum shows signs of recovery within a rising channel pattern.
- XRP faces the risk of testing monthly lows near the $2.75 support area.
Bitcoin (BTC) and Ripple (XRP) are finding themselves at crucial points, as profit supply diminishes while technical indicators suggest increased downside risk. In contrast, Ethereum (ETH) remains relatively stable despite the potential for broader market corrections.
While BTC and XRP appear to be on the brink of losing significant support levels due to waning daytime profits, Ethereum is fostering a sense of optimism with its upward channel formation.
Falling Profit Supply Raises Concerns
The ratio of coins held by profit-making investors is a key on-chain trend indicator. When this percentage increases, it suggests rising investor confidence, and a drop indicates the opposite.
According to Santiment data, the profit-sharing percentage for BTC fell from 100% at its all-time high and XRP from 98.2% at its monthly peak on August 8, down to 92.138% and 91.74%, respectively.
On the other hand, Ethereum enjoys sustained enthusiasm from institutional demand and hype around Orti-season, maintaining a profit ratio of 96.75%, peaking at 99.86% since August 13.
Bitcoin Faces Potential Downturn
As of Friday, Bitcoin’s Edge was trading at $112,736, down from the day’s high of $113,525. This decline pressures the critical support level of $111,920, established on August 3, which had prompted a recovery earlier this month.
If it falls below this support level, BTC could see its range drop to around $107,245.
The daily chart’s momentum indicator shows mixed neutral and bearish signals. Following its interaction with the signal line on Friday, the moving average convergence divergence (MACD) is now below the zero line, with a rising red histogram indicating increasing bearish momentum.
Nevertheless, the relative strength index (RSI) stands at 41, remaining above the oversold zone during horizontal movements. A slight uptick in the RSI suggests weak buying pressure, which struggles to keep up with the selling supply.
A bounce back could potentially trigger a BTC rally, aiming for the $120,000 supply zone.
Ethereum’s Upward Trend Offers Hope
After a 2.56% decline the previous day, Ethereum has made gains of over 1.50% as of Friday. The altcoin, valued at $518 billion, is maneuvering to maintain its position within a rising channel.
If Ethereum can continue its upward trend, it might even reach its all-time high of $4,868.
However, daily MACD indicators lean bearish as the average line approaches zero and the red histogram grows. Still, the RSI sits at 56, showing an upward trend and potential for more growth beyond neutral levels.
Looking ahead, any reversal below the support trend line near the $4,100 mark could push prices down to around $3,860, a level last seen on July 21.
XRP Sees Increased Downward Pressure
XRP Edge experienced a slight decrease of 0.50% on Friday, extending a prior loss of 3.36% from Thursday. This decline has pushed it below the 38.2% Fibonacci level at $2.85, starting from $1.90 on June 22 to a peak of $3.66 on July 18, raising the risk of further losses.
XRP could be poised to test the $2.75 demand area highlighted in yellow on the daily chart as selling pressure mounts.
The momentum indicator suggests a heightened risk of downsides, with the MACD and its signal lines dropping while the red histogram rises, indicating a risk-averse market sentiment.
The RSI, at 41, is trending downwards, indicating potential space for correction.
Conversely, should XRP reclaim the psychological level of $3.00, an upward trend might target a peak of $3.66.
