XRP is approaching a breakout of the descending resistance line, which could signal a recovery. The asset has been battling a downtrend over the past few weeks, but if momentum continues to build, its recent price action suggests a potential recovery. XRP is currently trading near $2.40, which is its short-term resistance level.
The most important level of support for buyers seeking to regain confidence is the sustained price holding above the 50 EMA. A recovery phase could occur if XRP is able to close above this downward resistance and generate further upward momentum. Investors should keep an eye on the $2.57-$2.60 range as their first primary price target. This zone will indicate a significant breakout from the latest consolidation phase and corresponds to previous local highs.
The next significant resistance level for XRP is $2.80, which was pushed back significantly earlier this month, if its value and volume continue to rise. A retest of the $3.00 level, a psychological barrier that could generate significant buying pressure, could be possible if that level is broken, further confirming a bullish reversal. XRP’s immediate downside support is between $2.10 and $2.15.
A decline below this level would indicate weakness and could push the asset back towards the 200 EMA, which is around $1.10. A neutral position with upside potential if buying momentum gains momentum is indicated by the RSI indicator, which is currently trading around 50. While it is still quite low, volume needs to increase sharply if XRP is to maintain the breakout.
Difficulties of the Shiba Inu
As the price continues to fall, the Shiba Inu is struggling to stay afloat and is showing obvious signs of market weakness. The 26 EMA, a crucial level that once provided support, has been broken by the SHIB on this chart. This breakdown suggests that buyers are not protecting the asset at critical levels and that selling pressure is increasing.
SHIB is currently trading at $0.00002712 where there has been a brief period of price consolidation but momentum has remained negative. The next closest support, which coincides with the 50 EMA (blue line), is located near $0.00002500 if the downtrend continues.
The $0.00002250 zone, a historically strong support that coincides with the 100 EMA (orange line), could be revisited by SHIB if this level fails to hold. In addition to confirming the broader trend reversal, a break below this level could push SHIB closer to the resting 200 EMA at $0.00002038.
Recent sessions have indicated a decline in buying interest, raising further concerns based on volume data. SHIB is not strong enough to make a significant recovery unless there is a noticeable increase in trading volume. Moreover, if sellers maintain control, the relative strength index, which currently stands at 49, could see further declines.
This indicates neutral or slightly bearish momentum. Any bullish reversal requires SHIB to close above the 26 EMA and retrace the $0.00002750 level. It would then be possible to move towards the $0.00003000 resistance level, but this would require a significant change in buying volume and sentiment.
Solana’s weakness
Solana is showing signs of weakness as it tries to avoid the ongoing downtrend. After strong gains in November, SOL shares came under increasing selling pressure and were unable to maintain upward momentum. Solana is currently following a clear downward trend, with lower highs indicating bearish sentiment prevailing in the market.
At $217, the asset has now fallen to the 50 EMA, which has served as a short-term support level. A break below the 50 EMA could lead to further declines and possibly test the next support level around $195, so this is a critical point for SOL. The 200-day EMA is located at $174, an important long-term support area, and if selling pressure continues, SOL could fall to this level.
Volume data indicates alarmingly low levels of buying interest. Bulls are reluctant to intervene at these levels, as evidenced by lower trading volume in the latest session. The lack of confidence makes it harder for SOL to break out of a downtrend and recapture higher price zones.
Solana needs to break through the downtrend line resistance around $225 to recover. If the price closes above this level, it will indicate a bullish reversal and could possibly retest the $240 region. However, if momentum cannot be restored here, the bearish trend will continue. Momentum is neutral to slightly bearish, with the relative strength index trading just below 50.
