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Will XRP’s $0.5 reversal finally happen? Bitcoin (BTC) can resist above $60,000, Cardano (ADA) lost $0.4: what will be the next step? By U.Today
U.Oggi – failed; the reversal attempt began on June 24. The asset gradually gained some strength in the market, but failed to break out of the 26 EMA, which shows that the current movement has neither momentum nor strength behind it.
XRP’s failure to break above the 26 EMA is a sign of the absence of buying pressure in the market. If the 26 EMA is not broken, it indicates that the bulls are not in control. The 26 EMA often serves as a significant resistance level.
Any price movement without much volume will likely be erratic and short-lived. There has been volatility in the broader cryptocurrency market, with key assets such as and seeing declines. It is difficult for altcoins like XRP to gain traction in this environment. XRP price action is significantly influenced by the overall bearish sentiment in the market.
Given that the RSI is currently in the 40-50 range, it appears that XRP is neither overbought nor oversold. The lack of significant momentum in either direction is supported by this neutral RSI reading. XRP needs to see an RSI move above 50, along with increasing volume and optimistic market sentiment, to stage a significant return.
A retest of lower support levels could occur if XRP struggles to stay below the 26 EMA. At $0.46, which historically serves as the asset’s floor, there is another major support level. A more significant decline in XRP could be expected, which could test even lower levels if this support is broken. However, a strong break above the 26 EMA, supported by increasing volume, could signal a possible reversal. XRP clearly needs more buyers.
Can Bitcoin Come Back?
Bitcoin is currently trading above the important psychological threshold of $60,000, but it is not yet clear whether the digital asset will be able to withstand the gradually increasing selling pressure in the market.
More and more vendors are putting more pressure on the cryptocurrency market, and Bitcoin is no different. Given the extreme volatility of the last few days, BTC’s price action will have to continue to remain above the $60,000 threshold. The current state of the market is testing this level, which has historically provided strong support.
Bitcoin will likely face challenges in the future, according to a number of technical indicators. The RSI between 30 and 40 suggests that Bitcoin is approaching the oversold area. In addition to reflecting the strong selling pressure that is currently driving the market, this could indicate a buying opportunity. It is also important to keep an eye on the moving averages, especially the 50 and 200 day EMAs.
If Bitcoin manages to hold above $60,000, we could see a potential rebound. The first target would be the $65,000 resistance level which, if breached, could pave the way for a rally towards $70,000. However, for this to happen, a significant increase in purchasing volume and positive market sentiment is required.
On the other hand, if Bitcoin fails to hold the $60,000 support, the next major support will be found around $57,000. A drop below this level could invalidate support at the 200-day EMA, pushing Bitcoin into a more bearish zone and potentially triggering a stronger sell-off.
It’s a stalemate
Cardano appears to be at a standstill as investors are not paying attention to what was once one of the most intriguing assets available, and enthusiasts are the only ones giving it serious consideration.
ADA’s pricing performance has been poor despite its potential and strong community support. With its price stuck around $0.41, the chart shows that Cardano has been struggling to gain ground. Notably, the 50-day and 200-day EMAs represent critical resistance levels for any significant upward move in the cryptocurrency, but have not been broken by any.
Technical analysis shows that Cardano is in oversold territory as its RSI is at the lower end. This could indicate that long-term investors have an opportunity to buy. But the low trading volume is a worrying indication that the market as a whole is not affected. At best, investor sentiment has been mixed on Cardano.