The recent market behavior of , Ripple‘s native digital currency, has raised numerous questions. Key technical and on-chain metrics, typically indicators of future price movements, appear to be at odds with the coin’s current state, raising questions about its immediate direction.
A major point of discussion has been the recent golden cross event. In technical analysis, a golden cross occurs when a short-term moving average crosses over a long-term moving average, often the 50-day moving average crossing over the 200-day moving average.
While these metrics would normally indicate a bullish future for the asset, the lack of clarity in XRP‘s broader narrative is causing hesitation. The market is currently grappling with a variety of factors, from global macroeconomic trends to regulatory pressures on cryptocurrencies. The ambiguity surrounding the asset’s future, despite the aforementioned positive on-chain metrics, is causing caution among investors and traders.
Ethereum price rebounds
Ethereum, the second largest cryptocurrency by market cap, has made a remarkable move towards the $1,900 mark. This rally, visible on the daily chart, comes as a surprise to many, especially when viewed in the context of the broader crypto market’s ongoing correction. However, this rally is not without chinks in its armor. A detailed analysis of Ethereum’s daily chart reveals several weaknesses that should be of concern to investors and traders.
First, the sharp rise in price is not being supported by a corresponding increase in trading volume. A price move, whether up or down, is generally considered robust and sustainable when it is supported by high trading volume. In the case of Ethereum, while the price has risen sharply, the volume bars remain relatively low. This divergence can often signal a lack of strong conviction behind the move and raise concerns about its sustainability.
In addition, the Relative Strength Index (RSI) on the lower chart is not in overbought territory, but is rapidly approaching it. An RSI nearing or above 70 can be an indicator that an asset is overbought, making it vulnerable to a sell-off.
From a purely price-based perspective, there is immediate resistance near the $1,900 level. Historically, this price level has acted as both support and resistance, making it a crucial point for Ethereum’s short-term price action. If Ethereum fails to break above this resistance, a pullback could occur. On the downside, support is seen around the $1,740 area, as indicated by previous price action where the asset found buyers.
Cardano Moves Forward
Hailed as one of the most prominent cryptocurrencies in the decentralized finance space, Cardano (ADA) is currently in an uptrend as seen on the daily chart. However, a deeper dive into ADA‘s chart, specifically its alignment with the 200 Exponential Moving Average (EMA), reveals that the digital asset may be heading into a storm of resistance.
The 200 EMA is a well-known tool among traders, 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 be facing significant resistance and possibly a trend reversal.
In addition, the volume accompanying ADA’s advance does not appear to be as robust as one might expect. A rally is typically considered sustainable when it is supported by significant volume. The divergence between ADA’s price action and the relatively muted volume may indicate a weakening trend.
