U.Today – The chart shows a falling flag pattern, indicating that the asset has entered a critical phase. This bearish continuation pattern usually indicates a possible decline. However, the 26 EMA, which has historically served as an inflection point for the asset, is currently where XRP is trading, and gives some hope for stabilization or even a possible rebound.
Decreasing highs and lows within a narrow channel are characteristics of the falling flag. The steadily decreasing trading volume during this phase is a positive indicator even though it may seem worrying. When volume decreases and prices fall, it usually indicates that there is not much selling pressure.
This could indicate that consolidation, rather than a long-term downtrend, is driving the move lower. The 26 EMA is a significant support level for XRP, and any bullish recovery depends on its ability to stay above it. A recovery from this level could see XRP retest the $2.40 resistance. If this level is broken, it may open the door for a move towards the $2.60 to $2.80 range, which houses more resistance.
On the other hand, if the 26 EMA does not hold as support, XRP may test lower. The 50 bill, which is $1.69, can be revised in case of damage. Selling pressure may increase if this occurs because market sentiment may become even more bearish. Investors should closely monitor the breakout direction of the flag pattern.
It could be the start of a new rally if XRP can rise higher with more volume. Amid the consolidation, the downward trend in volume offers some hope that XRP may be preparing for its next significant move. As the market awaits confirmation, patience and prudence remain crucial.
pivot
Dogecoin is currently trading near $0.318 and is at a pivotal moment in the market. After weeks of turbulence as bulls and bears fight for control, the asset has finally found its footing. Even with this brief stabilization, it is still unclear where DOGE will go in the future, and bearish signals may outweigh bullish optimism.
DOGE is currently trading around $0.32 on the price chart, which has offered short-term support but is not likely to hold in the long term. The 50 EMA has already been broken, indicating that the bullish momentum is waning. If selling pressure increases, the 100-day EMA, which sits at around $0.283, could serve as a safety net. DOGE price does not currently have the bullish momentum necessary for a proper recovery.
Since speculative interest in meme coins has waned, the overall market sentiment is also not providing much support. The price could attract buyers looking for a bargain if it falls below the 100 EMA, which could trigger a bounce. But if the 100-day EMA is broken, there may be a more severe decline towards the $200 EMA at $0.212. Investors anticipating a recovery should keep an eye on key resistance levels.
A pullback towards $0.40 or higher could be facilitated by a break above $0.35, which would reignite bullish momentum. However, for that reversal to occur requires a broad market rally and significant buying interest, something that seems less likely in the current climate. The short-term path of least resistance for DOGE will likely be down. Investors should prepare for additional declines before a significant reversal occurs, even if a recovery is feasible. As DOGE manages this delicate balance for the moment, patience and vigilance are essential.
$100,000 is a dream
Based on the recent price movements, it is approaching the 50 EMA, a crucial support level. In the past, this level, currently around $94,000, has been crucial to Bitcoin market cycles. However, a drop below that level could indicate that the current rally has lost momentum. Bulls should worry about the decline to the 50 EMA.
Although this level frequently serves as a launching pad for reversals, bullish periods traditionally end when it is surpassed. The early 2024 rally may go down as one of the weakest in Bitcoin's history, with gains of only around 60% from its previous all-time high if the cryptocurrency fails to hold this support. This performance is quite disappointing for a cryptocurrency that has seen exponential growth in the past.
Despite these concerns, Bitcoin's drop to the 50 EMA does not necessarily mean its uptrend is coming to an end. A recovery from this point could increase self-esteem and even cause a new rebound. To ensure the market continues to rise, the bulls will look for a solid recovery above the psychological threshold of $100,000.
On the contrary, Bitcoin may test lower levels like the 200 EMA around $75,000 if it continues to fall below the 50 EMA. Apart from signaling the end of the current bull market, this would also set a negative tone for the coming months. Compared to more conventional assets, a 60% gain is still impressive, even though it may seem small for Bitcoin.
This article was originally published on U.Today.
