U.Today – While struggling to stay above the critical support level of $60,000, it is now in a critical situation. This breakout may indicate that the current uptrend is coming to an end, which would make this bullish cycle the weakest of all.
Bitcoin is holding at the $60,000 level, which is an important psychological and technical support level, according to the daily chart. The picture presented by the moving averages is ominous. If broken, there could be a significant drop. A look at the volume indicates increased trading activity, especially on the days when Bitcoin crossed the $60,000 threshold.
This increase in volume indicates 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, the $60,000 mark has been a pillar of support, and its break indicates potential further declines.
Historically, such breakouts have exacerbated the downtrend by triggering panic selling. The next major support level is at $58,000, but if broken, there may be a more severe drop in Bitcoin, possibly testing the $55,000 mark.
The overall outlook for the market is bleak, with many investors doubtful that the bullish trend can continue. Selling pressure is increased by the apparent reduction in holdings of institutional investors, who have been a major factor in Bitcoin’s rally.
find support
With XRP touching the 200-day exponential moving average (EMA) support level, a critical turning point has been reached. This level frequently acts as strong support and could cause the asset to reverse to the upside. However, such a reversal might not result in significant gains, given the current state of the market and historical trends given the low purchasing power.
As seen on the XRP/USDT daily chart, XRP is currently hovering at the 200-day EMA (black line). This support level is significant because it frequently denotes a turning point in price corrections that can lead to a potential rally. However, as seen by the failed breakout of the descending triangle pattern, XRP’s recent performance points to strong resistance near the $0.65 mark.
Since then, the price has fallen again, highlighting the overall bearish mood in the market. Volume analysis indicates a decline in trading activity, suggesting waning investor interest. Although XRP appears to lack momentum, the relative strength index (RSI) is hovering around 45, indicating that it is neither overbought nor oversold.
A potential bullish reversal could find support at the 200-day EMA despite bearish signals. XRP could see a brief rally if buying pressure increases at this point. An encouraging sign to look out for could be a golden crossover where the 200-day EMA crosses above the 50-day EMA.
This event, which is often interpreted as a bullish signal, may attract more buyers and lead to a longer-lasting uptrend. Market sentiment remains cautious at the moment. Lower trading volume and overall lower liquidity in the cryptocurrency space have hurt XRP’s chances of making a meaningful recovery. Due to the likely broader economic uncertainties, institutional interest appears subdued and retail investors are hesitant.
goes with everything
Solana has seen a substantial drop, wiping out almost all of the gains it had made in the previous months. With SOL falling back to the crucial support levels it last visited several months ago, the recent price action has been brutal. This steep drop is seen on the SOL/USDT daily chart.
Solana had been on a strong rise, peaking in the first part of July. However, the asset has been falling ever since. The price dropped significantly, erasing most of its earlier gains from a high of around $175 to its current level of around $144.
This bearish sentiment is reflected in the key technical indicators. One indication of losing momentum is the break of the 50-day EMA. SOL is currently testing the 200-day EMA, a crucial support level. A breach of the aforementioned support could result in even further declines. With the RSI hovering around 36, SOL is approaching the oversold zone. While this could indicate the possibility of a quick recovery, the overall outlook for the market remains negative.
Solana’s fall has been compounded by the major challenges facing the cryptocurrency market as a whole. The increasing selling pressure is a result of institutional investors appearing to be pulling back. The price drop is consistent with an increase in selling activity as indicated by volume analysis. The next level of support could be much lower if the 200-day EMA is broken, which could result in further losses.
This article was originally published on U.Today
