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

• Bitcoin has rebounded above $78,000. The Democrats’ US midterm lead sends the US Dollar to a five-week low.
• With broader risk appetite returning on Wednesday, Ethereum edges higher to trade marginally above the 200-day EMA.
• Above $1.28, XRP attracts bulls targeting a near-term break beyond $1.30.

Bitcoin (BTC) is trading above $78,000 on Wednesday. Improving risk appetite across the cryptocurrency market supports the move. Hovering above $2,300, Ethereum (ETH) shares BTC’s recovery outlook. Ripple (XRP) is also changing hands above $1.28, extending its gains to two consecutive days.

US midterms support cryptocurrency rebound

Democratic gains in the United States (US) midterm elections form the backdrop to the broader recovery. The party is securing successive victories and advancing towards 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 midterm results put it under pressure. The fall brings the index into line with a six-month low, suggesting market concern over the election outcome.
Sponsored by Republican lawmakers, the US CLARITY Act did not clear the Senate. 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.”

$78,448: Bitcoin recovery gathers momentum, technical analysis shows

At $78,448, Bitcoin retains a bullish near-term bias. Supporting that outlook are the 100-day and 200-day Exponential Moving Averages (EMAs) at $77,806 and $76,558, respectively, alongside rising trendline support running from $71,126 to $75,650. The price nevertheless remains below the 50-day EMA at $80,067 and the SuperTrend line at $82,920. These barriers suggest consolidation within the continuing uptrend.

With the Relative Strength Index (RSI) near 43 and the Moving Average Convergence Divergence (MACD) below zero, momentum signals remain cautious. Further gains could therefore develop gradually, even as the broader structure retains support.

The 50-day EMA at $80,067 presents the nearest resistance, ahead of the SuperTrend hurdle at $82,920. Below the market, the recent pivot area around $78,448 provides the first significant support zone. Stronger demand sits along the short-term rising trendline at $75,650, while the earlier trendline near $71,126 offers deeper structural support. Adding to these layers are the 100-day and 200-day EMAs at $77,806 and $76,558. As long as the price remains above them, the broader bullish structure stays intact.

$2,318: Ethereum targets near-term recovery, technical analysis shows

At $2,318, Ethereum’s near-term bias remains bearish. It sits just above the 200-day EMA at $2,313, but the 100-day EMA at $2,350 continues to cap the price. Further resistance comes from the 50-day EMA at $2,407 and the SuperTrend line at $2,490. This layered overhead structure persists despite the MACD moving into positive territory above zero. An RSI reading of 43 still signals muted momentum.

The first upside hurdle is the 100-day EMA near $2,350. Beyond it lie the 50-day EMA around $2,407 and stronger resistance at the SuperTrend level near $2,490. The 200-day EMA at roughly $2,313 supplies immediate downside support. Losing that floor on a sustained basis would likely open the way to lower levels again. To reduce the current bearish bias, Ethereum would need a daily close back above the cluster of moving-average resistance levels.

$1.28: XRP edges higher as bulls re-enter, technical analysis shows

At $1.28, XRP remains below its key moving averages, leaving the near-term bias bearish. Overhead resistance starts with the 100-day EMA at $1.32 and the 50-day EMA at $1.34, with the 200-day EMA at $1.37 adding to supply. Spot prices also sit below the Bollinger Bands’ middle band at $1.29, indicating a downside bias. Although the MACD is slightly positive and the RSI is neutral near 43, their combined signals point to only limited recovery potential for now.

The Bollinger middle 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 pursue a stronger rebound, the Bollinger upper band at $1.36 and the 200-day EMA at $1.37 define a wider supply zone. Immediate structural support, meanwhile, comes from the Bollinger lower band around $1.23. A breach would likely allow a deeper correction. Holding this floor would instead preserve 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.)