- Ethereum raises questions
- Solana signals growth
It appears that XRP’s recent attempt to ignite a rally through a mini-golden cross in which the 50-day EMA crossed above the 100-day EMA was a complete failure to generate bullish momentum. The market dismissed it rather than using it as a catalyst, which left XRP trapped in a descending wedge pattern and open to additional declines. XRP is currently trading just above the crucial 100-day EMA, which has previously served as both support and resistance. At the moment, the price is around $2.28, and it is clearly weaker over shorter time periods.
Despite the golden cross, the volume is low and the daily candles are closing lower, which suggests that traders are generally uninterested or even cautious. Bulls in XRP are especially irritated by this as they were hoping that the golden cross would end the downward high/lower low pattern that has beset the cryptocurrency since March.
Rather what is happening is a well-known situation for altcoins: Altcoins find it difficult to draw in new investors and are unable to maintain even bullish technical structures when Bitcoin’s dominance is high as it is at the moment.
Further supporting the notion of listless price action is the RSI reading of 47, which indicates that there is no obvious overbought or oversold signal. A retest of the 100 EMA at $2.26 is becoming more likely unless XRP finds a catalyst quickly or Bitcoin stabilizes. The next probable stop is $2.15 if that breaks.
As a result, the mini-golden cross for XRP appears to be less significant in the current market conditions. Expect more consolidation or even more declines below the 100 EMA until the general risk appetite shifts back to altcoins and XRP experiences actual transactional growth or breakout volume.
Ethereum raises questions
As a possible double top formation appears on the daily chart, Ethereum’s price structure is beginning to show warning indications that the recent rally may not be sustainable. Ether has retreated to about $2,475, embracing the crucial 200 EMA support after testing highs close to $2,700 twice and failing to break through with convincing volume. Two peaks of comparable height are separated by a trough in this classic pattern, which could confirm a bearish reversal if the neckline at $2,400 breaks.
Concerns are increased by the fact that the RSI has moved lower from the overbought area above 70, currently hovering around 58.9, indicating that selling pressure is beginning to creep in and momentum is ebbing. Patterns of volume support this warning story. Volume has decreased since the initial spike above $2,300 in early May, suggesting that fewer buyers are joining the rally.
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Prior to a breakdown rather than a breakout, this divergence, price testing highs with declining volume, occurs frequently. If ETH loses the $2,400-$2,450 range, the 200 EMA at $2,300 would be the next crucial level. It would be especially concerning if ETH broke below this moving average since it would render the early May breakout structure void and pave the way for a retest of $2,200 and possibly $2,000 in the upcoming weeks.
Overall, Ethereum’s weakness is similar to what is occurring with many other altcoins at the moment: Altcoins like ETH are having difficulty maintaining momentum while Bitcoin is still in a dominant uptrend. Ethereum’s optimistic outlook is in limbo as a result of the market’s shift toward Bitcoin.
This is a time for traders to exercise caution. The double top pattern is dependable, and since ETH is situated directly on a critical support zone, any significant breakdown could gain momentum rapidly. Watch that $2,300-$2,400 range, if it folds, ETH might head south next.
Solana signals growth
Technical indicators are positioning Solana for a potential big surge despite the fact that it has been progressively consolidating around the $170-$175 range. This impending change in momentum is centered on the EMA convergence. The 50-day, 100 and 200-day EMAs are beginning to converge on the daily chart just below the current price levels.
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Traditionally, these moving averages’ compression and coiling indicate the impending arrival of a significant directional move, typically occurring within a few days to weeks. The odds are in favor of an upside resolution to this coiling because of Solana’s recent strength in recovering from the 200-day EMA at $150 and regaining the $160-$165 region. It is supported by the volume pattern. Volume has stabilized but hasn’t fallen since the strong breakout from $130 in early May, indicating that traders are merely reloading positions rather than giving up on the move.
There is still ample opportunity for another leg higher without running the risk of overbought conditions right now as indicated by the RSI’s stability in the mid-50s. There are two obvious key price levels to keep an eye on: Support is at $165, and if the market becomes volatile, it will firmly settle at $150. An upward push above $180-$185 would end the current short-term decline and signal the start of the next leg up.