Bitcoin, Ethereum, XRP Weakness Amid Decreasing Demand from Individual Investors

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

As individual investors' buying sentiment rapidly cools, major virtual assets such as Bitcoin (BTC), which was eyeing the $80,000 mark, along with Ethereum (ETH) and XRP (XRP, Ripple), have failed to break through key resistance levels and are collectively entering a heavy 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's perpetual futures open interest clearly shrank from $62.67 billion the previous day to $59.63 billion on Friday, indicating a significant weakening of the upward driving force.

Technically, Bitcoin still maintains a positive bias above the 50-day exponential moving average (EMA) of $72,789 and the 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, but the Money Flow Index (MFI) in the upper 70s suggests 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 fallen for two consecutive days, trading around $2,317. Ethereum futures open interest decreased from a weekly high of $32.41 billion to $30.98 billion, indicating wavering investor confidence. It is currently using the 50-day EMA of $2,230 as support, but with the MACD turning negative, breaking 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 its monthly high of $2.8 billion to an average of $2.57 billion on Friday. Exposed to selling pressure, the current price is at $1.43, barely defending a neutral trend above the 50-day EMA of $1.41 and the 20-day Simple Moving Average (SMA) of the Bollinger Bands at $1.39.

On the daily chart, XRP's Relative Strength Index (RSI) is 56, and the Moving Average Convergence Divergence (MACD) remains positive, but the Money Flow Index (MFI) reaching 74 warns that buying pressure is slowly reaching its limit. The media added that if it overcomes the upper resistance level of $1.48, it could target 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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