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XRP has recently been at the forefront of some crucial developments. Currently, the asset is standing at a pivotal price level, showcasing a bullish pattern that has the potential to dictate the future trajectory of its value.
Upon examining the chart, XRP is showing signs of robust health. It is trading above the 50-day and 200-day exponential moving averages (EMAs), a sign typically indicative of bullish sentiment. The potential bullish cross of these EMAs could signal continued upward momentum. This technical configuration, paired with an RSI comfortably above the 50 mark, suggests that buyers are in control, laying the groundwork for further appreciation in price.
Recent price action corroborates this, with XRP registering a significant single-day gain following the SEC’s decision to drop charges against Ripple executives. The price surge of 6.5% stands as testimony to the influence of regulatory developments on the asset’s valuation.
XRP’s bullish momentum is further fueled by the recent approval from the Dubai Financial Services Authority (DFSA). This opens up a new frontier for XRP, potentially leading to increased adoption and integration within digital asset services. Ripple’s announcement of this development could serve as a catalyst for further bullish movement.
Moreover, the overarching sentiment from the ongoing SEC lawsuit has seen a tilt in favor of Ripple. The SEC’s backtracking is being read by the market as a strong bullish signal, influencing the price to set up for a possible parabolic run.
Two scenarios
In light of recent events and the current technical stance, the first scenario is a continuation of the bullish trend. With the recent approval in Dubai and the SEC’s lawsuit woes, we could witness XRP targeting the next resistance levels. According to the 39-month cycle trend analysis, we could even see an ambitious breakout to unprecedented levels, with predictions going as high as $1,000. While this seems far-fetched at the moment, a significant breakout cannot be ruled out, particularly if Ripple emerges decisively victorious from its legal battles.
No market moves in a straight line, and XRP is no exception. The second scenario takes into account the possibility of a correction. Despite the bullish indicators, markets often retrace after strong movements, and profit-taking can result in short-term price dips. If XRP’s price fails to sustain above the EMAs, a bearish crossover could trigger a correction. However, given the strong fundamental backdrop, any correction could be short-lived, serving as a consolidation phase before the next leg up.
Shiba Inu to get tested
Shiba Inu (SHIB) has recently garnered significant attention as it approaches a critical resistance level. A closer examination of the SHIB/USDT daily chart reveals a tactful tussle between bullish hope and bearish realism.
After enduring a prolonged downtrend, the meme-inspired cryptocurrency has seen a notable upsurge in its market activity. However, it has been met with a robust resistance level that has proven to be a tough nut to crack. The resistance in question coincides with the 200-day exponential moving average (EMA).
The 200 EMA serves as a barometer for the asset’s health over a protracted timeframe. For Shiba Inu, which is now witnessing its price orbit this significant average, the anticipation of a decisive move has intensified.
However, such optimism must be tempered with caution. Shiba Inu’s recent attempts to breach this line have been met with stiff resistance. The consequence of these repeated rejections could be twofold. On the one hand, each failure to surpass the 200 EMA can weaken the resolve of bulls, potentially leading to a loss of momentum and a subsequent price retracement.
Technically, the situation is tantalizing. The convergence of the shorter-term EMAs below the price suggests an underlying bullish sentiment. The trading volume, while not overwhelming, has been sufficient to support the recent price actions. Furthermore, the relative strength index (RSI) remains in a neutral position, leaving room for upward movement without immediate overbought concerns.
About the author
Arman Shirinyan