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XRP Hits Multi-Month Low, Solana (SOL) At Strongest Support, Bitcoin (BTC) Price Drop Is Better Than You Think
Arman Shirinyan
Most of the market believes that crucial levels are already secured
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XRP it once again lost contact with the market and fell below the fundamental threshold of $0.5. This isn’t the first time XRP has disappointed people, but its continued failure to rise raises some serious questions.
The cryptocurrency has struggled to stay afloat in the face of major market swings. If investors were expecting a recovery, the recent drop to multi-year lows is a worrying indicator. Bearish sentiment still rules the XRP market, as evidenced by the inability to maintain gains above $0.5.
Analysis of technical indicators reveals that XRP has been struggling with a number of significant moving averages. Current price action below the 200-day moving average (black line), which serves as a crucial long-term support level, is a bearish signal. The difficulty XRP which is regaining upward momentum is further highlighted by the 50, 100 and 26 day moving averages (green). Due to continued selling pressure, the price has continuously failed to break above these moving averages.
The convergence of these moving averages indicates a lack of significant directional movements, which often occur before major price moves. The recent movement of XRP has unfortunately been negative.
Volume trends also indicate a lack of significant buying interest, as recent declines have been accompanied by higher than normal trading volumes. This suggests that an increasing number of traders are offloading their holdings in XRP, which is pushing the price lower.
Solana is not finished
Solana it fell towards the 50 EMA for the first time since it broke above it in May. This is not a good sign for the asset, but at the same time it does not create problems that SOL investors should panic about.
The 50-day exponential moving average (EMA) is crucial for Solana. If Solana continues to trade above this line, it could indicate that the current downtrend is short-lived and a recovery is likely. At $159.00, Solana price is currently trading near the 50 EMA (blue line).
While bearish sentiment exists, the price action suggests that SOL’s overall structure is still in place. A sustained move below this level could indicate more significant downside potential, so investors should keep an eye on it. Other moving averages show that the 200 day EMA is much lower, sitting around $130, while the 100 day EMA is around $151.
In case the price falls further, these levels act as additional support and a buffer. The proximity of the 100-day EMA provides a secondary support zone that could be essential to avoid more significant selling. Solana has been trending upward, despite the current recession.
The asset’s strong ecosystem and expanding usage have contributed to its significant growth. Perhaps the market is correcting itself, with this recent pullback giving it time to stabilize before a possible rebound.
Additionally, volume trends indicate a stable market with no notable spikes that would suggest panic selling. Indicating that Solana is neither overbought nor oversold, the Relative Strength Index (RSI) is positioned near neutrality. If market conditions improve, this balanced RSI reading suggests there may be room for an upward move.
Bitcoin is still bullish
Bitcoin lost $70,000 once again, but at the same time, if we look deeper, we will see that digital gold has no problems as long as it remains above $68,000, since it is the first threshold protected by a significant resistance level.
The overall structure of the Bitcoin market has not changed even with the recent drop below $70,000. As a safety net, the key support level at $68,000 is present. Bitcoin it still has a strong base. This price is important because it is in line with important technical indicators and market sentiment.
There were no noteworthy spikes in selling pressure, according to volume trends, suggesting that the recent decline may have been a healthy correction rather than the start of a downtrend. Since Bitcoin is neither overbought nor oversold, the RSI is in neutral territory, providing opportunities for future upward moves should market conditions improve.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.