Armand Sirignan
The market may be on the verge of failure as we see a spike in bearish trends
Read U.TODAY
google news
Ethereum is currently on the verge of a significant price drop. As of the latest chart, Ethereum is trading near the $3,000 level, which is a significant psychological barrier. This volatile position suggests a possible fall towards $2,950, and market observers are closely monitoring this event.
Although trading volumes have subsided, this suggests that this potential decline may be temporary. However, Ethereum price stability mainly depends on whether the support at $2,961 can be maintained. A break below this level could trigger a more pronounced decline to around $2,780. This scenario is not just a small fluctuation. It is indicative of a larger issue occurring within the Ethereum trading environment.
The overall situation on the Ethereum chart does not inspire much confidence at the moment. One of the more concerning signs is the possibility of the moving averages converging. This event typically signals upcoming volatility and suggests that the market may be preparing for significant price changes. While such volatility can sometimes lead to bullish breakthroughs, the current situation does not guarantee such an outcome.
XRP faced death
XRP is currently facing a “death cross”. This occurs when the short-term 50-day exponential moving average (EMA) falls below the long-term 200-day EMA, a classic bearish indicator in the trading world. In the case of XRP, this pattern is not just a theoretical concern, but a visible sign on the chart that indicates that the downtrend could strengthen.
The formation of a death cross on the XRP chart suggests that the current downtrend could get even worse. The possibility of XRP falling towards $0.50 or even lower is imminent. This technical setup is very important to traders as it often occurs before the price falls further, reflecting bearish investor sentiment.
But it's not all doom and gloom. There is notable trendline support near $0.51. If this support holds, it could prevent further immediate losses and give holders some respite. However, as the current trading volume remains low, downward pressure on the XRP price remains a concern. Low volume often means less market activity, and relatively small trades can make prices more volatile.
Going forward, traders and investors will be watching closely for a possible reversal of this trend. A “golden cross” that occurs when the 50-day EMA rises above the 200-day EMA is a bullish signal and can indicate that XRP’s value is likely to rise. Such crosses are known to signal the beginning of a significant increase in asset value.
Solana's disguise
SOL seemed poised for a move higher, but its failure to break out of the 50-day exponential moving average and subsequent reversal raises suspicions of a false breakout.
A true breakout is usually supported by strong trading volume and a decisive crossing of a key technical level, such as a moving average. However, in the case of Solana, the volume has been on a downward trend, in contrast to the initial upward price trend. This lack of volume support is a red flag and suggests that the breakout may not have the momentum to sustain itself.
Adding to the concerns is SOL's inability to sustain price levels above $150. It quickly reversed towards the lows, indicating that the market may not be ready for a sustained uptrend. This behavior is often indicative of a “fakeout,” where price briefly breaks out of a major resistance or support level, only to return to the previous range.
The convergence of the moving averages could potentially introduce some volatility and a glimmer of hope for an upside move. However, current market conditions are not conducive to a strong recovery. Solana has recently broken below the trendline that previously served as resistance and is now facing a key support level at $140, which coincides with the 100-day EMA.
A broader market rally would be needed for a significant recovery to appear on the charts, but that seems unlikely at this point. The overall crypto market is experiencing a correction, and absent a positive change in sentiment and market dynamics, there is little chance of a strong rebound for Solana.
About the author
Armand Sirignan
