Crypto Today: Bitcoin, Ethereum and XRP build on gains as US Dollar falls following Democrats' US midterm victory

• The Democrats’ US midterm lead sends the US Dollar to a five-week low, while Bitcoin rebounds above $78,000.
• With the price marginally above the 200-day EMA on Wednesday, Ethereum edges higher as risk appetite improves across the market.
• A short-term break above $1.30 is in the bulls’ sights as XRP holds above $1.28.

Above $78,000 on Wednesday, Bitcoin (BTC) is benefiting from a broader improvement in cryptocurrency risk appetite. Ethereum (ETH) shares BTC’s recovery outlook, trading just above $2,300. Meanwhile, Ripple (XRP) holds above $1.28, extending its gains to a second consecutive day.

Crypto rebounds as US midterm results lift sentiment

Democratic gains in the United States (US) midterm elections have accompanied the wider market recovery, as successive victories bring the party closer to control of the House. NBC News reports that Democrats have substantially exceeded their 2024 margins, making significant inroads into Republican territory.

At 101.41, the US Dollar Index (DXY) is down 0.45% on the day as the midterm results put it under pressure. The fall brings the index in line with a six-month low, suggesting concern in markets over the election outcome.
Republican lawmakers sponsored the US CLARITY Act, but it failed to clear the Senate. The prospect of a Democratic majority in the House could significantly reduce the bill’s chances of becoming law.

In Tuesday’s ‘Ahead of the Curve’ report, K33 Research analysts said, “Today, the US midterm elections could trigger substantial volatility, with prediction markets assigning a 71% probability to Democrats winning both chambers,” adding, “This combination of thin liquidity and elevated leverage increases the risk of sharp price swings once market activity picks up following the election.”

Bitcoin technical analysis: Recovery gathers momentum

Holding above its 100-day and 200-day Exponential Moving Averages (EMAs), at $77,806 and $76,558 respectively, Bitcoin retains a bullish short-term bias at $78,448. Rising trendline support extending from $71,126 to $75,650 also underpins the price. Nevertheless, the 50-day EMA at $80,067 and the SuperTrend line at $82,920 continue to cap the pair, pointing to consolidation within an established uptrend.

With the Relative Strength Index (RSI) around 43 and the Moving Average Convergence Divergence (MACD) below zero, momentum signals remain cautious. Further gains could therefore be gradual, even as the broader structure continues to find support.

The 50-day EMA at $80,067 presents the nearest resistance, ahead of the SuperTrend hurdle at $82,920. Below the current price, the recent pivot region around $78,448 offers the first significant support. Stronger demand lies along the short-term rising trendline at $75,650, followed by deeper structural support on the earlier trendline near $71,126. Adding to this layered support are the 100-day and 200-day EMAs at $77,806 and $76,558. The broader bullish structure remains intact while the price holds above these averages.

Ethereum technical analysis: ETH targets a near-term rebound

At $2,318, Ethereum remains bearish in the short term despite holding narrowly above its 200-day EMA at $2,313. The 100-day EMA at $2,350 continues to limit gains, with the 50-day EMA at $2,407 and the SuperTrend line at $2,490 providing further resistance overhead. Although the MACD has turned positive above zero, this succession of resistance levels remains in place, while an RSI reading of 43 indicates that momentum is still subdued.

The first upside hurdle is the 100-day EMA near $2,350. Beyond that lie the 50-day EMA around $2,407 and a stronger ceiling at the SuperTrend level near $2,490. Immediate downside support comes from the 200-day EMA at approximately $2,313; a sustained breach would likely clear the way for further losses. To alleviate the current bearish bias, Ethereum would need a daily close above the cluster of moving-average resistance levels.

XRP technical analysis: Buyers return as price edges higher

Below its key moving averages, XRP retains a bearish short-term bias while trading at $1.28. The 100-day EMA at $1.32 and the 50-day EMA at $1.34 are capping the price, with the 200-day EMA at $1.37 adding to overhead supply. Spot remains below the middle Bollinger Band at $1.29, signalling a downward bias. A marginally positive MACD reading and a neutral RSI around 43 suggest that recovery potential remains limited for now.

The middle Bollinger Band near $1.29 is the first resistance level, ahead of the 100-day EMA at $1.32 and the 50-day EMA at $1.34. Should buyers mount a stronger rebound, the upper Bollinger Band at $1.36 and the 200-day EMA at $1.37 define a wider supply zone. The lower Bollinger Band around $1.23 provides immediate structural support. Losing that level would likely open the door to a deeper correction; holding above it, however, leaves scope for a corrective rebound within the prevailing bearish structure.

(The technical analysis of this story was written with the help of an AI tool. Know more.)