Ethereum
Will XRP Reversal Start After Volume “Reset”? Ethereum (ETH) in terrible shape, Cardano (ADA) hits the gas pedal at $0.45
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One asset that stands out in its recent performance is XRP, surprisingly. The latest charts show a decrease in trading volume for XRP, which could pave the way for significant changes in its price action. This reduction in volume can potentially act as a “reset” of the asset’s dynamics.
A sharp decline in volume often indicates that the current price trend may be petering out. For XRP, this could mean that any new influx of liquidity, regardless of its size, could have an amplified impact.
Essentially, with fewer transactions, each new purchase or sale carries more weight, which can lead to more pronounced price swings. This creates an environment ripe for a possible reversal, especially if market conditions align favorably.
A critical point to consider is the recent support level around $0.5. This price level acted as a psychological barrier, where the value of XRP bounced slightly after approaching or touching this level. The sustainability of this level of support is crucial; it represents a threshold that could either bolster confidence in a potential recovery or signal further decline if it fails to sustain.
However, the bigger picture includes the overall market recovery. The fate of XRP’s reversal does not solely depend on its own volume and price actions.
Cardano soars
Cardano has slightly crossed the $0.45 mark, but that leaves a lot to be desired. However, this could be the first sign of the strength we’ve all been waiting for.
The aforementioned price level previously acted as both support and resistance, making it a crucial indicator of future movements. The current rise is particularly noteworthy because it suggests growing bullish sentiment among investors, potentially paving the way for further gains.
Looking at the graph, Cardano is trading below key moving averages, which generally suggests bearish control. However, the recent surge above $0.45 marks an important pivot point. This indicates that ADA is gaining momentum, possibly challenging the next resistance levels.
Trading volume, while not exceptionally high, has remained stable, providing stable ground for the recent price rally. Additionally, the Relative Strength Index (RSI) shows that ADA is not in overbought territory, which bodes well for upside potential without immediate risk of pullback due to overvaluation.
Ethereum’s position
Not only has ETH recently lost the crucial $3,000 threshold, but alarming news has surfaced regarding activity related to a notorious hack. According to recent reports, the hacker responsible for the Parity Multisig wallet breach in 2017 began moving stolen funds, specifically 3,050 ETH, according to Etherscan. What’s more concerning is the significant amount of Ethereum still under the hacker’s control: approximately 83,017 ETH, valued at over $247 million at current prices.
From a technical perspective, the Ethereum price chart paints a bleak picture. The asset is consistently trading below the 50- and 100-day moving averages, signaling a downtrend with no immediate signs of recovery.
The recent loss of the $3,000 support level has worsened the negative sentiment, suggesting further potential declines if the trend continues. This level previously served as a psychological benchmark for bullish sentiment, and surpassing it could lead to accelerated selling.
The revelation of the movement of hack funds in 2017 could have disastrous implications for the stability of the Ethereum market. Such events typically spark fear among investors, particularly those concerned about possible market manipulation or increased selling pressure due to large volumes of securities. ETH which could be thrown into the market.
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.