Armand Sirignan
The brutal reversal we witnessed could end badly for this bullish cycle
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XRP witnessed its steepest price decline in years, plummeting 20% in two days. XRP is typically characterized by low volatility, so the magnitude of this plunge was particularly devastating.
This sharp decline caused XRP to drop in value and break through several important support levels. The decline was sudden, easily cutting through the expected support around $0.58 and stopping just above the $0.48 level.
Our main focus now shifts to the next technical support level for the asset. The 200-day EMA stands out as a potential rebound point, sitting at around $0.57, just above where the drop stopped. If XRP stabilizes and recovers above this line, a semblance of confidence may return to the market.
Despite the shock, the growth scenario remains on the horizon. For a bullish reversal to gain credibility, XRP will need to regain position above the resistance that formed around the $0.58 level. However, given the current market situation, that goal seems unrealistic.
Ethereum is on the verge
After a significant drop, Ethereum is hovering in price just above $3,050. This precarious position has the crypto community wondering, “Is Ethereum about to drop below the iconic $3,000?”
Recent price action has not been favorable for Ethereum as it is testing the 100-day exponential moving average (EMA), which is currently near the $3,050 level. This average often provides some buoyancy, but its strength as a support level is not ironclad. If Ethereum fails to maintain this level, a drop below $3,000 is looking increasingly likely.
However, it is worth considering the possibility of reversal. The start of a new week may see a change in market dynamics as investors look to take advantage of what they perceive to be bargain prices. This buying pressure at local lows has the potential to reverse the downtrend, at least temporarily.
From a chart perspective, there is room for cautious optimism if Ethereum holds ground above the $3,050 support. A rebound from this level could push the price back toward the $3,400 resistance. This signals a resurgence in buying interest and could help avoid a deeper decline.
If Ethereum breaks below the $3,000 threshold, the next important support level will be the 200-day EMA, or approximately $2,695. A drop to this lower bound could signal a more pronounced bearish phase for Ethereum.
The key for Ethereum going forward is whether it can muster the strength to defend the $3,000 level. If that happens, the story could turn back to a positive direction, especially if it can surge above the 100 EMA.
bitcoin fails
Bitcoin has surprised us all with a significant price drop and the majority of market participants are concerned about the future of this bullish cycle.
A decline to levels near $64,300 could signal a trend reversal and an end to the recent bull run.
Despite the recent decline, Bitcoin has not completely left its support levels. The 50-day moving average is currently near $58,417, offering a glimmer of hope as a potential rebound point. If Bitcoin can maintain stability above this MA, a reversal remains possible.
A closer look at the chart suggests that the drop at $64,300 could open up a scenario where Bitcoin tests the next support level, the 100-day moving average near $60,000. Maintaining levels above this could be important to maintaining a bullish outlook. If this happens and investor confidence remains stable, Bitcoin has a chance to recover and re-target the resistance level, perhaps near $67,500, where it recently faced a pullback.
About the author
Armand Sirignan
