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A reversal still possible, Ethereum (ETH) encounters the first strong support
Arman Shirinyan
The current state of the market raises some serious questions and many concerns
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XRP it hasn’t been the strongest asset on the market this year, but despite that, it isn’t facing any of the problems we’re seeing on Ethereum and Bitcoin. XRP managed to avoid trouble at $0.48. However, the lack of volatility could prove to be a negative factor when the market reversal begins.
Compared to its competitors, XRP has demonstrated exceptional stability in recent months. Throughout the day, XRP managed to maintain its price range relatively stable, while Ethereum and Bitcoin experienced substantial fluctuations.
Its steady trading volume and the general attitude of the XRP community are two of the reasons for its stability. At the $0.48 support level, XRP resilience is one of its most important current characteristics. This level supported potential upside moves by serving as a base and preventing further declines. XRP’s price consistency suggests there is an engaged and optimistic investor base about the company’s future.
But there may also be a downside to this stability. Assets with minimal movements can occasionally go unnoticed by traders chasing quick profits in a highly volatile market. If XRP persists in trading in a narrow range, it could lose the speculative interest that often drives notable price increases on other cryptocurrencies.
This lack of volatility for XRP it could be an advantage or a disadvantage, as the market as a whole looks for a possible reversal. On the one hand, risk-averse and safe-haven investors may be attracted by its stability. However, XRP may struggle to keep pace with more volatile assets that could see sharp increases in value if there is a significant change in market sentiment.
Bitcoin’s critical blow
Despite the fact that Bitcoin dropped below the $65,000 price mark, the top cryptocurrency could still show us a substantial reversal in the near future. The next major support for the asset is at around $57,000, but if we see a surge in buying support right now, there is nothing stopping BTC from reaching $70,000.
A number of factors, including increased selling pressure from miners and a shift in overall market sentiment towards caution, can be attributed to the recent decline in Bitcoin prices.
The current technical agreement suggests that a rebound could be possible. Essential support was provided by the 100-day moving average (orange line) at around $64,000. How the price of Bitcoin moves at this point will be crucial to predicting the near term course.
The distribution of liquidity should also be taken into consideration. The chart provided shows notable liquidity above the $70,000 mark. This implies that if Bitcoin were to regain momentum, a significant amount of liquidity would be just waiting to be released, which could spur a sharp rise in price. It is advisable for market participants to monitor the quantity of transactions.
An increase in trading volume combined with an improvement in the RSI could indicate the start of a reversal. Furthermore, macroeconomic variables and encouraging reports on Bitcoin acceptance or regulatory clarity could provide the necessary impetus for a price increase.
The Collateral Damage of Ethereum
Ethereum it did not avoid the blow suffered by Bitcoin. The second largest cryptocurrency on the market plummeted to $3,300, which is not the lowest level for Ether we have seen this month. Just a week ago, ETH already tested this support level, which could be a sign of an imminent reversal in the future.
The recent decline in Ethereum it’s part of a larger market trend where there is more pressure on sellers of major cryptocurrencies. However, ETH’s current position at the $3,300 support level is very important. Historically, this level has served as important support offering a solid foundation for future upward moves.
Ethereum appears poised for a reversal based on technical indicators. At the moment, the 100-day moving average is functioning as a crucial support level and the daily chart’s relative strength index is approaching oversold values.
The increased volume could indicate that buyers are entering the market at this support level, which could push the price higher. Ethereum could spark more buying interest and pave the way for a potential comeback if it manages to hold above this crucial support.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.