XRP is testing a technical level at the 26-day EMA, which could decide whether a deeper pullback is likely or if the recent uptrend can be sustained. A clean rebound is less likely given the current circumstances, even though the 26 EMA has historically served as a springboard for continuation. The price action has been consolidating following a strong rally earlier this month.
Since the last local low, there has been a sharp upward trendline, but its steep angle indicates limited sustainability. A quick breakdown toward lower supports frequently results from such aggressive slope lines failing under selling pressure. The trendline will probably also be broken if the 26 EMA does not hold, which would allow for faster downward movement. There are not any significant tailwinds for XRP in the larger market context.
Trading volumes have been tapering off, and it looks like the recent rally has lost steam. In the absence of fresh buying interest, the price runs the risk of falling below the EMA support, which might draw technical sellers into the market. In the event that XRP drops this level significantly, the first important support is located close to the 50-day EMA at $2.89.
Failure there would reveal $2.70 as the next important zone, which was crucial as support during the consolidation in July. In order to reopen the path toward recent highs and restore bullish confidence, a significant rebound from the 26 EMA and a break above $3.20 would be required.
Stakes on Ethereum increase
In recent sessions, the volume of Ethereum trades has increased by over 300%. As ETH stays close to the $4,600 mark, the surge shows that market activity around Ether is still through the roof from both retail and institutional sides. The volume increase can indicate a possible turning point around here and hint at increasing volatility.
Technically, ETH’s Relative Strength Index (RSI) is not at extreme levels, but it is situated just above the overbought threshold. According to historical data, this reading may indicate that the market may experience consolidation or slight pullbacks before regaining its bearings. Ethereum is still technically stretched, though, given its sharp increase from the $3,000 range only a few weeks ago, regardless of the RSI’s position.
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A robust uptrend has been driving the sustained momentum, with ETH trading significantly above important moving averages. The trend structure is still in place as of right now, and the price has continuously respected the 26 EMA as dynamic support. However, the rally’s steepness raises the possibility of fatigue.
These kinds of overheated conditions frequently lead to corrective phases, particularly if volume spikes start to align with profit-taking. If Ethereum retreats, the first significant support — which corresponds to recent levels of consolidation — is located close to $4,000. The $3,500 range below that is a more advantageous one where buyers may reenter.
Bitcoin’s breakthrough attempt
The recent price action of Bitcoin is displaying warning indicators following an unsuccessful attempt to break above the $121,000 resistance level. At first, the move appeared promising, with Bitcoin surpassing a crucial level. However, the inability to maintain momentum has resulted in a significant decline. Failed breakouts like this one have typically indicated weakness in the past and can lead to additional downside pressure as traders unwind long positions.
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The significant increase in trading volume during this decline only serves to heighten the worry. Expanding volume during a downward price movement typically indicates more selling activity and insufficient buying support to counteract the pressure. This dynamic makes deeper reversals more likely. With its current flat position, the 26-day EMA provides little directional guidance.
At this point, it cannot function as a trustworthy trend-support indicator in the absence of a strong angle. Before oversold conditions are reached, there is still plenty of opportunity for further downward movement, as indicated by the RSI’s hovering around the neutral 50 level. The first significant support, which is in line with recent consolidation and near the 50-day EMA, is located close to $115,000 if the bearish trend persists.
The level of $110,000, a crucial level that has served as a significant pivot in previous cycles, would come into focus if there was a breakdown here. A drop of $110,000 might increase selling pressure and allow Bitcoin to move closer to $102,500, which is the 200-day EMA, a historically important long-term support level.
