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XRP is currently hovering at a key support level at $0.51 and is facing a period characterized by volume decline and technical uncertainty.
When examining trading volumes, you will usually see a decline, which is a sign of stagnation. Further complicating the outlook is the threat of a “death cross.” This is a technical chart pattern where the 100-day EMA falls below the 200-day EMA and is often interpreted as a bearish signal for future price movements.
The RSI is currently below 50, suggesting that the market may be trending bearish. Although the current RSI level does not definitively set a bearish line for XRP, it certainly raises some concerns.
Taking a closer look at the price chart, it is important to note that XRP is able to hold the $0.51 support level. This level has historically served as a strong rebound point. However, there is significant resistance at $0.59, a point that has previously acted as a barrier to upside. A break above this resistance level could open the way to $0.75.
On the downside, if XRP fails to hold the $0.51 support, the next target could be the $0.45 support level, which would mark the low of a major historical decline. A fall to this level could increase selling pressure and lead to further declines.
Ethereum is facing pressure
Things could turn around for Ethereum as recent patterns on the price chart suggest strength in the market trend. On the chart, we discovered what is called a “high low”. This is when prices fall, but not as much as the previous decline, indicating a potential shift away from bearish sentiment. If Ethereum continues to make these higher lows, it could form a strong trendline that acts as support.
Ethereum is strengthening with increased trading volumes, signs of growing interest, and bullish indicators, meaning more traders are getting involved and the price is likely to rise.
Looking to the future, if Ethereum maintains this trajectory and its support holds firm, it could target higher resistance levels. The next major resistance level he sees is near $3,400, and a break above could pave the way to above $3,500.
In this scenario, the newly formed trendline will support Ethereum price as long as the buying momentum continues. This potential bullish phase requires sustained trading volumes and positive broader market sentiment.
Bitcoin is in a narrow range
Bitcoin is currently stuck in a narrow trading range between the 50-day EMA and 100-day EMA. This technical situation often portends a spike in volatility, suggesting that Bitcoin may soon experience large price movements.
At the moment, Bitcoin is trading between its 50-day EMA of approximately $64,000 and its 100-day EMA of approximately $59,500. These levels act as short-term resistance and support levels, respectively.
The reduced trading volume observed in recent days also further increases the likelihood of volatility. Low volume means fewer trades are occurring, which can result in more dramatic price changes when large orders enter the market. This decrease in volume could indicate a decline in investor interest or uncertainty about Bitcoin's future direction, potentially leading to significant outflows from the asset.
If Bitcoin sustains the breakout above the 50-day EMA, it could target higher resistance near $70,000. Conversely, a break below the 100-day EMA could test further support near the $50,000 level. These developments will be important in determining the direction of Bitcoin in the short term.
However, if Bitcoin fails to maintain its position above the $65,500 support level, it could enter a bearish phase and decline towards the lower support at $59,000, resulting in an outflow of investments. It gets worse.
About the author
Armand Sirignan
