U.Today – Critical support is found at the 26 EMA, a level that stabilizes the asset. The asset’s short-term performance will likely be determined by the ongoing battle for this price. A recovery could be possible if XRP manages to recover there, which would indicate a reversal of the current downtrend. However, there can be serious bearish effects if the above is not followed.
In line with XRP’s descending trendline, the 26 EMA acts as dynamic support. A reversal is even more important due to this confluence increasing pressure on the asset. Increased trading volume combined with a successful move above the 26 EMA could push XRP back towards the $2.20 and $2.50 levels. Such a breakout could reignite buying interest and likely give market participants more confidence.
Conversely, if XRP cannot overcome this obstacle, it could have serious implications. If the asset is rejected at this level, it could test lower support levels, which would likely confirm the current downtrend. After $1.79, which corresponds to the 100 EMA, $1.47 is the first notable support level.
XRP’s market structure would be significantly weakened by a break below these levels, which could push the price closer to $1.07, its next key support zone. Additionally, the relatively low trading volume that has accompanied XRP’s recent moves is concerning.
Wake up
Ethereum has formed a higher low, which is a strong short-term bullish signal and shows encouraging signs of recovery. This change suggests that the market may be preparing for a recovery phase that could reverse the recent downtrend. The lack of significant trading volume further supports the easing selling pressure, evidenced by the formation of higher lows.
Lower volume may seem alarming at first glance, but it also means that bearish momentum is weakening. This could allow bulls to regain control in the coming weeks, especially as new capital enters the market in January. The 50 EMA, a crucial indicator of short-term market trends, is one of the critical support levels above which ETH is currently holding. If the asset continues higher, it could soon test the $3,544 resistance level.
Ethereum’s reputation would likely be restored if it breaks this level and opens the door to a test of the $3,800 level. However, the market’s overall downward trend remains a cause for concern. A full Ethereum recovery is still hampered by overall market sentiment.
An increase in trading volume and increased buyer participation are necessary for ETH to continue its upward trend. Ethereum could see a turning point in January. Historically, the beginning of the year saw a resurgence of interest in the cryptocurrency market. ETH could pave the way for a stronger recovery if it can sustain its current price and stay above $3,000.
loses against USD
At levels that have heavily influenced Bitcoin’s momentum, (DXY) is still rising. Historically, Bitcoin and DXY have had an inverse relationship: Bitcoin finds it difficult to sustain rallies when the dollar gains value. As DXY gains ground, this dynamic is occurring again. Bitcoin is under bearish pressure due to the recent rally in DXY, which is currently trading at around 108.
Investor confidence in the US economy is reflected in the strengthening dollar due to the Federal Reserve’s continued tightening of monetary policy and strong economic data. As a result, demand for US dollar-denominated assets has increased, leading to a move away from riskier options such as Bitcoin.
Bitcoin’s recent rally has stalled as the dollar strengthens. Bitcoin has lost momentum after attempting to break the psychological barrier of $100,000 and is currently trading below key resistance levels. Since outflows from the cryptocurrency market are often caused by a strong dollar, DXY’s growth has made it harder for Bitcoin to sustain buying interest.
Bitcoin is seen as a hedge against the devaluation of fiat currencies, which explains this inverse relationship. Investors turn to Bitcoin as a substitute store of value when the dollar falls. However, a rising DXY reduces this appeal and sends Bitcoin into a bear market. The future prospects for Bitcoin’s recovery depend on a possible reversal in DXY development. If the price stabilizes or declines, Bitcoin could gain ground and possibly rise again.
