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Bitcoin (BTC) Can Reach $75,000, Here’s How, Another Attempt to Reverse XRP, Dogecoin (DOGE) Tests $0.13 Again, But There’s a Problem
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Bitcoin took a hit after hitting the $71,000 mark, losing 14% of its value and plummeting below $60,000. However, there is a realistic possibility of a reversal in the near future, as BTC has reached the lower threshold of the sideways market channel.
First of all, BTC price action indicates a significant buy zone at $58,000, a historical support level. The 200-day moving average, or the black line on the chart, and this support level imply that a Bitcoin rebound may be imminent.
The volume profile is showing more encouraging signs. Due to the recent decline, trading volumes have increased, suggesting that buyers are still very interested in the product at these low prices. Increased activity typically signals an impending price reversal because it is accumulation by investors anticipating future gains. Moving averages provide an additional layer of understanding.
While these levels often serve as dynamic support and resistance zones, the chart indicates that Bitcoin is currently trading below the 100-day and 50-day exponential moving averages. A break above these moving averages on Bitcoin suggests a possible trend reversal and a move in the direction of bullish momentum.
For now, there is no specific fuel for the asset and it is unlikely that this will happen in the near future unless the Ethereum ETF pushes the market forward as a whole.
XRP is getting ready
XRP is about to make another reversal attempt to break the downward trend that came after the prolonged sideways trend. We are aiming for the breakthrough of the 26 EMA and a substantial stabilization and reversal. However, momentum is what is really needed right now.
The chart indicates that XRP had difficulty maintaining its upward momentum and continued to fail to breach significant resistance levels. To suggest a possible trend reversal, XRP needs to cross above the 26-day exponential moving average (EMA). This level has acted as a barrier and a successful breach could herald the start of a bullish phase.
Volume analysis reveals that traders have different opinions, however. Trading volume has occasionally increased, but not consistently enough to allow for a long-term uptrend. Significantly higher buying volume is needed to Exchange rate risk to maintain his reversal attempt. This would give the market the momentum it needs to break above resistance levels and keep prices higher.
XRP is currently in the neutral zone, according to the Relative Strength Index (RSI). There is potential for an upside move as it shows neither overbought nor oversold conditions.
Dogecoin aims higher
Dogecoin will test the $0.13 price threshold in the coming days, suggesting the current market composition. We will most likely see a test of the 200 EMA mark and a subsequent breakthrough if there is enough momentum.
The 200-day exponential moving average (EMA) is represented by the $0.13 mark on the chart, which indicates that Dogecoin has been struggling to break above significant resistance levels.
A successful break above this level, which has historically been a major resistance point, could signal a bullish reversal. There may be cause for concern as volume analysis indicates that trading activity has been relatively modest. Dogemoneta requires a considerable increase in purchasing volume to continue its upward trend.
The momentum needed to convincingly break above the 200 EMA may be hampered by the lack of consistently high trading volumes. The relative positions of the 100 and 50 day EMAs are also noteworthy. Currently, Dogecoin is trading below both of these moving averages, which typically denotes a downtrend.
But DOGE would be a very bullish indicator if it could gather enough buying pressure to break above these levels. Further insights are provided by the Relative Strength Index (RSI).
The fact that Dogecoin’s RSI is currently circling around the neutral zone indicates that there is still potential for an upward movement without an overbought situation. A move above the 50-point RSI mark would increase confidence in a possible bullish breakout.
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.