Ethereum
Ethereum (ETH) on the Verge of Fall, XRP Death Cross Solidifies, Solana (SOL) Breakout Could Be Fake
Arman Shirinian
The market may be on the verge of failure as we are witnessing a rise in bearish trends.
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Ethereum is currently on the verge of a significant price drop. According to the latest charts, Ethereum is trading near the $3,000 mark, a critical psychological barrier. This precarious position signals a potential decline towards $2,950, an event closely monitored by market observers.
Trading volume, although down, suggests that this potential decline could be temporary. However, Ethereum’s price stability largely depends on its ability to hold support at $2,961. A fall below this level would result in a steeper decline to around $2,780. This scenario is not just a minor fluctuation; This highlights broader issues at play within the Ethereum business environment.
The overall situation on the Ethereum chart does not inspire much confidence at the moment. One of the most worrying signs is the possible convergence of moving averages. This event generally indicates upcoming volatility, which suggests that the market could be preparing for significant price movements. Such volatility can sometimes lead to a bullish breakout, although in the current climate such an outcome is not guaranteed.
XRP faces death
XRP is currently facing a “cross of death”. This occurs when the short-term 50-day exponential moving average (EMA) crosses below the longer-term 200-day EMA, a classic bearish indicator in trading circles. For XRP, this trend is not just a theoretical concern but a visible sign on the charts, indicating that the downtrend could intensify.
The formation of the death cross on the XRP chart suggests that the current downtrend may worsen. There is a looming possibility that XRP could fall to $0.50 or even lower. This technical setup is crucial for traders because it often precedes further price declines, reflecting bearish investor sentiment.
However, all is not gloomy. There is notable trendline support around $0.51. If this support continues, it could prevent further immediate losses and provide some respite for holders. But as current trading volumes remain low, downward pressure on XRP price remains a concern. Low volume often means less activity in the market, which can make the price more sensitive to sharp movements on relatively small trades.
Going forward, traders and investors will carefully monitor a possible reversal of this trend. A “golden cross,” which occurs when the 50-day EMA rises above the 200-day EMA, would be a bullish signal and could indicate that the value of XRP is expected to increase. Such a crossover is known to signal the start of a significant rise in asset values.
Solana’s fake
GROUND appeared poised for gains, but its failure to breach the 50-day exponential moving average and subsequent reversal raised suspicions of a false breakout.
Typically, a true breakout is supported by high trading volume and a decisive crossing of key technical levels such as the moving averages. For Solana, however, volume is declining, contradicting the initial upward price movement. This lack of volume support is a red flag, suggesting that the breakout may not have the momentum to sustain.
Added to the concerns is the fact GROUND inability to sustain above the $150 price level. It quickly reversed to lower prices, indicating that the market may not be ready for a sustained uptrend. This behavior is often indicative of a “counterfeit,” in which the price briefly breaks out of a key resistance or support level only to return to its previous range.
The convergence of moving averages could potentially introduce some volatility, offering a glimmer of hope for an uptick. However, current market conditions do not favor a robust recovery. Solana recently fell below the trendline that previously served as resistance, and it now faces a critical support level at $140, which aligns with the 100-day EMA.
For a significant recovery to appear on the chart, there would need to be a broader market rally, which seems unlikely at the moment. The overall crypto market is experiencing a correction, and without a positive change in market sentiment and dynamics, Solana’s chances of a strong rebound are almost non-existent.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.