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The recent market performance of XRP, Ripple’s native digital currency, has raised numerous questions. Key technical and on-chain metrics, typically indicators of future price movements, appear to clash with the current state of the coin, raising questions about its immediate direction.
A main point of discussion has been the golden cross event that XRP recently experienced. In technical analysis, a golden cross is marked when a short-term moving average crosses above a long-term moving average, often the 50-day moving average surpasses the 200-day moving average.
Historically, this is considered a bullish signal, hinting at potential bullish momentum. Given XRP’s recent encounter with this event, many anticipated a positive price reaction. However, the asset has so far failed to take advantage of this upside potential, causing frustration among its holders.
While these metrics would normally indicate a bullish future for the asset, the lack of clarity in the broader XRP narrative is raising doubts. Currently, the market is facing a multitude of factors, from global macroeconomic trends to regulatory pressures on cryptocurrencies. The ambiguity surrounding the future of the asset, despite the positive on-chain metrics mentioned above, is causing caution among investors and traders.
Ethereum price recovers
Ethereum, the second-largest cryptocurrency by market capitalization, has taken a notable step, hurtling toward the $1,900 mark. This price bounce, visible on the daily chart, surprises many, especially when viewed in the context of the broader crypto market’s ongoing correction phase. However, this rebound is not without cracks in its armor. A detailed analysis of Ethereum’s daily chart reveals certain weaknesses that should worry investors and traders.
First of all, the sharp rise in price is not supported by a proportional increase in trading volume. A price movement, whether up or down, is generally considered strong and sustainable when it is supported by high trading volume. In the case of Ethereum, although the price has risen, the volume bars are still relatively low. This divergence can often indicate a lack of strong conviction behind the move and raises concerns about its sustainability.
Furthermore, the RSI (relative strength index) at the bottom of the chart, although not in overbought territory, is rapidly approaching it. An RSI that approaches or crosses the 70 mark can be an indicator that an asset is overbought, which could make it vulnerable to a sell-off.
From a purely price-based perspective, Ethereum faces immediate resistance near the $1,900 mark. Historically, this price level has acted as support and resistance, making it a crucial point for Ethereum’s short-term price trajectory. If Ethereum fails to overcome this resistance, it could suffer a pullback. On the downside, support is seen around the $1,740 range, indicated by previous price actions where the asset found buyers.
Cardano advances
Cardano (ADA), hailed as one of the most prominent cryptocurrencies in the space of decentralized finance, is currently showing an uptrend, as seen on the daily charts. However, a deeper dive into ADA’s chart, particularly its alignment with the 200 EMA, reveals that the digital asset could be heading into a storm of resistance.
The 200 EMA is a recognized tool among traders and is often used to determine the overall trend of an asset. When prices are above this line, it indicates a bullish market and vice versa for bearish conditions. ADA’s recent encounters with this EMA suggest that it may face significant resistance and potentially a trend reversal.
Additionally, the volume accompanying ADA’s rise does not appear to be as strong as one would expect. A rally is generally considered sustainable when it is supported by substantial trading volume. The divergence between ADA price movement and relatively moderate trading volume could be indicative of a weakening trend.
