Ethereum
Solana (SOL) Biggest Breakout in 2024, Ethereum (ETH) Struggling, XRP Forms Important Pattern
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Solana recently made what many investors and analysts are calling the most significant breakout of 2024. The asset managed to break through key trendline resistance that was instrumental in keeping it in a downtrend for a period prolonged.
This breakthrough is particularly significant because it signals a potential reversal of the downward trend that Solana is experiencing. Crossing this trendline could serve as a powerful catalyst for future gains, instilling investor confidence in the asset’s upward trajectory. Following this key development, Solana now faces the next challenge, namely the 26-day exponential moving average (EMA).
The 26 EMA has historically acted as a difficult resistance level, and a decisive move above this level could confirm the bullish momentum. Currently, Solana is trading around $146.82, with immediate resistance at the 26 EMA seen just above this price level. Overcoming this issue would likely pave the way to the 50-day EMA, which sits around $163.29.
If Solana manages to maintain its position above these EMAs, it could further validate the strength of its current market rally. This scenario not only reflects a significant technical victory but also potentially marks the start of a new bullish phase for Solana.
Ethereum is in trouble
Ethereum is currently in a difficult phase as it faces several crucial moving averages on its price chart. Currently, ETH is working to break above the 26-day moving average, which is a short-term measure of its price momentum.
The recent price chart indicates that after potentially overcoming the 26 CMA hurdle, ETH will face the next significant resistance at the 50-day moving average (AMA). These moving averages are key indicators monitored by traders to assess potential reversals or confirmations in the market trend.
If Ethereum manages to surpass the 50 AMA, it would likely pave the way for a move towards previous highs around $4,000. This is not an all-time high for the cryptocurrency, but it represents a critical recovery point after previous sell-offs.
As for volume, it appears stable with no clear signs of an upward or downward trend, suggesting neutral market sentiment. Likewise, the Relative Strength Index, positioned around 50, indicates a balanced condition between buyers and sellers without leaning towards an overbought or oversold market state.
At this level, the price of ETH does not demonstrate a clear directional trend and appears to be consolidating, moving sideways as it strengthens for a potential upward move. This consolidation phase is essential because it gives the market and investors time to align on the future direction of the asset.
On the chart, notable resistance is visible at around $3,200, past the current level around $3,120. Support, on the other hand, is established near the $2,900 mark, providing cushion in case of downward pressure.
The new model of XRP
XRP is currently in a symmetrical triangle pattern, showing a potential surge in volatility for the foreseeable future. This technical formation often indicates a period of consolidation before a significant price breakout in one direction or the other.
Currently, the price of XRP is hovering around $0.55, showing a delicate balance between supply and demand. The symmetrical triangle suggests that the asset is compressing and a breakout is imminent. The direction, however, remains unclear due to mixed signals from other technical indicators.
A worrying development alongside the triangular configuration is the looming possibility of a “death cross.” This occurs when the 50-day moving average crosses below the 200-day moving average, which is traditionally a bearish signal for traders. If this event materializes, it could potentially accelerate XRP’s downtrend.
In contrast, the formation of the triangle itself often precedes a reversal. This possibility suggests that if XRP manages to navigate through the turbulence of the death cross, there could be an opportunity for a bullish reversal. Support levels currently sit around $0.50, which has historically provided a rebound point during downtrends. Resistance lies near the $0.60 mark, a break of which could pave the way for a move towards higher resistances.
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.