Bitcoin, Ethereum, XRP Weakness Amid Decreasing Individual Investor Demand

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

As individual investors' buying sentiment rapidly cools, major virtual assets including Bitcoin (BTC), which was eyeing the $80,000 mark, along with Ethereum (ETH) and XRP (Ripple), have failed to break through key resistance levels and are all entering a significant correction phase.

According to FXStreet, an investment media outlet, on April 24 (local time), Bitcoin is currently trading just below the critical resistance level of $78,000, losing upward momentum and consolidating. The main reason for this correction is the decrease in demand from individual investors. According to CoinGlass data, Bitcoin perpetual futures open interest clearly contracted from $62.67 billion the previous day to $59.63 billion on Friday, showing a significant weakening of the momentum that had been driving the rally.

Technically, Bitcoin maintains a positive bias, remaining above its 50-day Exponential Moving Average (EMA) of $72,789 and its 100-day EMA of $75,484. On the daily chart, the Relative Strength Index (RSI) hovers around 64, and the Moving Average Convergence Divergence (MACD) is positive; however, the Money Flow Index (MFI) is in the high 70s, suggesting an overbought condition which could limit short-term gains. Only by overcoming the supply zone at $78,000 can the trend extend towards the 200-day EMA of $82,522.

Ethereum, the leading altcoin, has also declined for two consecutive days and is trading around $2,317. Ethereum futures open interest has decreased from a weekly high of $32.41 billion to $30.98 billion, indicating wavering investor confidence. Currently, it is using the 50-day EMA of $2,230 as support, but with the MACD turning negative, breaking through the 100-day EMA of $2,354 will be difficult without additional buying pressure.

XRP's situation is not significantly different. As demand in the derivatives market wanes, XRP perpetual futures open interest has retreated from a monthly high of $2.8 billion to an average of $2.57 billion on Friday. Exposed to selling pressure, the current price is $1.43, barely defending a neutral trend above the 50-day EMA of $1.41 and the Bollinger Bands 20-day Simple Moving Average (SMA) of $1.39.

On the daily chart, XRP's RSI is 56, and the MACD remains positive, but the MFI reaching 74 warns that buying pressure is slowly reaching its limit. The media added that if it surpasses the overhead resistance of $1.48, it could aim for the 100-day EMA of $1.53, but if the support level of $1.39 breaks, it could enter a deep correction phase, falling to around $1.30.

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