Bitcoin is currently in a critical situation as it struggles to stay above the critical $60,000 support level. This breach could mean that the current bull run is coming to an end, making this bull cycle the weakest yet.
Bitcoin is holding at $60,000, which is a significant psychological and technical support level, according to the daily BTC/USD chart. The picture that the moving averages paint is worrying. If they are broken, a significant decline could occur. A look at the volume indicates a lot of trading activity, especially on days when Bitcoin crossed the $60,000 threshold.
This spike in volume points to increased selling pressure, which could be a sign that investors are liquidating their holdings due to concerns that the bull market is ending. For Bitcoin, $60,000 has been a support fulcrum, and a break there points to potential further declines.
Such disruptions have historically exacerbated the downtrend, triggering panic selling. The next major support level is at $58,000, but if it is broken, a more severe drop in Bitcoin could occur, possibly with a test of $55,000.
The overall outlook for the market is gloomy, with many investors skeptical that the bull run can continue. Selling pressure is being exacerbated by the apparent decline in institutional holdings, which have been the main driver of the Bitcoin rally.
XRP Finds Support
With XRP touching the 200-day exponential moving average (EMA) support level, a critical turning point has been reached. This level often acts as a strong support and can lead to an upward reversal of the asset. However, such a reversal may not lead to significant growth given the current state of the market and historical trends, given the low purchasing power.
As you can see from the daily XRP/USDT chart, XRP is currently supported by the 200-day EMA (black line). This support level is important as it often marks the turning point in price corrections that can lead to a possible bounce. As you can see from the failed breakout from the descending triangle, XRP’s recent performance, however, points to strong resistance near the $0.65 mark.
Since then, the price has fallen again, highlighting the overall bearish sentiment in the market. Volume analysis indicates a decline in trading activity, suggesting a decline in investor interest. Although XRP appears to be lacking momentum, the relative strength index (RSI) is hovering around 45, indicating that it is neither overbought nor oversold.
A possible reversal higher could find support at the 200-day EMA despite the bearish signals. XRP could see a short-term rally if buying pressure intensifies at this point. An encouraging sign to watch for could be a golden cross, where the 200-day EMA crosses above the 50-day EMA.
Generally interpreted as a bullish signal, this event could attract additional buyers and lead to a longer uptrend. Market sentiment is still cautious at the moment. Declining trading volume and liquidity across the crypto space has hurt XRP’s chances of a significant comeback. With broader economic uncertainty likely, institutional interest appears muted and retail investors are hesitant.
Solana goes for broke
Solana has seen a significant drop, erasing almost all of the gains made over the past few months. With SOL returning to critical support levels it last visited months ago, the recent price action has been brutal. This sharp drop can be seen on the daily chart of SOL/USDT.
Solana has seen a sharp rise, reaching its zenith in the first half of July. However, the asset has been on a downward trend since then. The price has fallen significantly, erasing most of its previous gains from a high of around $175 to a current level of around $144.
This bearish sentiment is reflected in key technical indicators. A sign of loss of momentum is a break of the 50-day EMA. SOL is currently testing the 200-day EMA, an important support level. A break of the aforementioned support could lead to even bigger declines. With the RSI hovering around 36, SOL is approaching oversold territory. While this may indicate the possibility of a quick recovery, the overall outlook for the market is still negative.
Solana’s decline has been exacerbated by the serious problems facing the cryptocurrency market as a whole. The growing selling pressure is a result of institutional investors seemingly retreating. The price decline is in line with a surge in selling activity, as indicated by volume analysis. The next support level could be much lower if the 200-day EMA is broken, which could lead to further losses.
