Predictions for the top 3 cryptocurrencies: Bitcoin, Ethereum, and XRP are bouncing back after a correction.

As of the time of writing on Monday, the 3 leading cryptocurrencies by market capitalization – Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) – have recorded a slight bounce back and are currently trading steadily around the respective levels of $114,000, $3,500, and $3. Previously, in the past week, all 3 of these coins experienced a significant correction, with corresponding declines of nearly 5%, 10%, and 9%, reflecting the market sentiment that remains volatile and fragmented. Nevertheless, technical indicators are sending positive signals, suggesting the potential for short-term surges if the current support zones continue to hold.

Bitcoin finds support around the 50-day EMA

Bitcoin's price has broken below the accumulation range around $116,000 on Thursday, leading to a nearly 3% decline over the next two days, bringing the price back to test the 50-day exponential moving average (EMA) around $112,974. Notably, this EMA line nearly coincides with the previous historical peak at $111,980, forming an important technical support zone.

The reaction from this zone is quite positive: BTC has bounced back 1.48% on Sunday after hitting the support level, and by Monday morning, the recovery momentum continues, with the trading price exceeding $114,500.

If this support zone continues to hold, Bitcoin has the potential to extend its bounce back to the $116,000 mark — the accumulation zone that was recently broken.

BTC/USDT daily chart | Source: TradingViewTechnically, the relative strength index (RSI) on the daily frame is at 47 and is trending upwards towards the neutral threshold of 50, reflecting that the bullish momentum is gradually weakening. For the bounce back trend to be more clearly consolidated, the RSI needs to surpass the 50 mark.

On the contrary, if Bitcoin cannot maintain its upward momentum, selling pressure may pull the price back down to the zone of $112,975 — where it converges with a strong support zone and the 50-day EMA.

Ethereum bounces back after a sharp fall

The price of Ethereum (ETH) closed below the important support level of $3,730 on Thursday, afterwards plummeting 8.23% in the following two sessions and breaking through the $3,500 mark. However, by Sunday, the decline slowed down as ETH found support around the 78.6% Fibonacci retracement level at $3,392 and began to bounce back slightly. As of Monday morning, the recovery momentum continued to be maintained, bringing ETH back to trading above the $3,500 zone.

If the buying power is maintained, ETH could definitely extend its upward momentum and aim for the zone of $3,730 — an area that was once strong support, now acting as resistance.

ETH/USDT daily chart | Source: TradingViewOn the daily chart, the RSI indicator has bounced back from the neutral zone of 50 on Saturday and is currently at 56, indicating that bullish momentum is gradually returning.

However, in a negative scenario, if selling pressure increases, ETH may reverse and adjust towards the next support zone around $3,170 — coinciding with the 50-day exponential moving average (EMA), which is considered an important boundary to determine the short term trend.

XRP bounces back after hitting an important support zone

The price of XRP closed below the Fibonacci 61.8% level at $2.99 on Friday, then fell an additional 6.48% on Saturday, retreating to test the important support zone around $2.72. This is a convergence area of many notable technical factors — including the Fibonacci 50% level at $2.78 and the 50-day EMA line at $2.79 — forming a solid "defensive belt" for the bulls.

The reaction from this support zone is quite positive: XRP rose by 6.45% on Sunday. As of the time of writing on Monday, the recovery momentum is still being maintained as the price continues to inch up around the mark of $2.95.

If buying power continues to strengthen and XRP can close above the resistance level of $2.99, the bullish outlook will be extended, with the next target being the daily resistance zone at $3.40.

Daily XRP/USDT Chart | Source: TradingViewThe RSI indicator on the daily frame is also supporting this scenario, as it has slightly crossed above the neutral level of 50 — a sign that selling pressure is gradually weakening. However, for the bounce back trend to be reinforced, the RSI needs to continue to stay above this threshold.

On the contrary, if the recovery momentum weakens and the adjustment pressure returns, the support zone of $2.72 will continue to be an important front line to watch.

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