Ethereum
Will it hold? Solana (SOL) Interesting model at $144, what’s next? Ethereum (ETH) in a problematic state
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XRP sits at a pivotal support level around $0.50. Recently, the cryptocurrency experienced a breakout from a symmetrical triangle pattern, a bearish signal that usually indicates a continuation of the downtrend. However, this has not yet translated into a significant decline, thanks to strong support at $0.50.
XRP saw an increase in volume during the breakdown, showing conviction from the bulls. The 50-day moving average and the 200-day moving average are converging above the current price.
The RSI is hovering around 40, which suggests that XRP is not yet oversold, meaning there could still be some room for further downward movement before a potential rebound. However, resilience at the $0.50 level could also imply a consolidation phase before any significant movement.
The key takeaway is the importance of the $0.50 support level. If this level holds, we could see a consolidation phase with the potential for a reversal, especially if volume continues to remain high, indicating sustained interest. On the other hand, a break below this support could lead to further declines, potentially testing lower support levels around $0.45.
The Solana descending canal
Solana is currently showing a problematic price trend on its daily chart. The cryptocurrency is trading in a descending price channel. This trend often indicates a period of consolidation before a potential breakout, which could lead to increased volatility and significant price movements.
SOL fluctuates within this descending channel, bounded by two parallel trendlines. The lower trendline serves as support, while the upper trendline serves as resistance. The price is currently testing the upper boundary of the channel, around $146.63, suggesting a possible breakout.
Volume has remained relatively stable, with occasional spikes that highlight periods of increased trading activity. These volume increases often precede large price movements, indicating that traders are watching closely GROUND for any sign of escape.
The 50-day moving average is currently above the price, providing further resistance, while the 200-day moving average is well below the current price, indicating long-term bullish sentiment. The RSI is hovering around 48, which suggests that SOL is in a neutral zone and is not yet overbought or oversold.
A breakout above the descending channel could signal the end of the consolidation phase and potentially lead to a surge in volatility. This breakout is what many traders are eagerly waiting for, as it could mark the start of a new uptrend for Solana. On the other hand, if price fails to break through resistance and continues to trade within the channel, we could see further consolidation before any significant movement.
Ethereum’s struggle
Ethereum struggles below the crucial $3,000 level. This breakout is worrying because it suggests a bearish dynamic. Currently, ETH is attempting to hold support above $2,800, trading around $2,895.
ETH has stabilized below $3,000, indicating a potential problem for its price stability. If the price drops further, it could target the 200-day EMA, around $2,779. This moving average often acts as a reversal point, so it is a critical level to watch.
Moving averages and volumes currently show a possibility of worsening, as the price of Ethereum hasn’t really shown any signs of an upcoming price rise. Unfortunately, buyers are not providing the necessary support for ETH to break through and gain strength to enter a bull run.
Volume profiles are relatively neutral, and their most recent rise isn’t really a sign of anything. The broader market has seen an influx of funds, and Ethereum’s volume development is only part of it.
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.