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Coins ready for a rally: technical analysis
As the global cryptocurrency market shows signs of recovery, traders and investors are looking for coins with the potential for a bull run. Technical analysis can provide insights and a clear picture of the future price trajectory. This analysis will focus on XRP, Bitcoin (BTC), and Polygon (MATIC), as cryptocurrencies with potential.
1. XRP (Ripple)
The legal challenges faced by Ripple have not stopped XRP from being a strong player in the cryptocurrency market. The coin is trading at $0.43471 today and is showing mixed signals on various technical indicatorsHowever, they do indicate the possibility of an uptrend.
THE EMA The values of various periods consistently indicate a sell signal. Downward pressure is indicated in both short-term and long-term time frames.
The MACD level is -0.01507, which suggests a downtrend.
This indicates that the short-term moving average is below the long-term moving average, which typically indicates a sell recommendation.
XRP is approaching oversold levels with an RSI of 32.08. The RSI for Exchange rate risk is low, indicating potential undervaluation and a possible impending price increase.
According to Fibonacci levels, the critical resistance levels are located at $0.52038 and $0.56541.
Some of the support levels are at $0.40897 and $0.44216. To confirm an uptrend, XRP needs to clear the resistance at $0.52038.
2. Bitcoin (BTC)
Bitcoin, as a dominant player, usually sets the tone for overall sentiment in the cryptocurrency space. At a price of $56,679, the coin is showing a mix of bearish and bullish trends.
EMA values for BTC Priceranging from 10 to 200 days, show a selling sentiment, further confirming a bearish trend.
Bitcoin’s MACD level indicates a downtrend. This signal shows that the short-term average is below the long-term average, suggesting a possible decrease in momentum.
An RSI of 28 for BTC indicates oversold conditions, usually before a possible upward correction. This low RSI level suggests that Bitcoin may be undervalued and could attract buying interest.
Based on the Fibonacci retracement levels, Bitcoin faces immediate barriers at $64,360 and $70,265. Critical support levels are located around $50,867 and $56,022. A breakout of these resistance levels would confirm a bullish outlook for Bitcoin.
3. Polygon (MATIC)
Polygon’s scalability solutions for Ethereal have attracted a large following. Let’s examine MATIC’s technical patterns using Fibonacci retracement.
At the price of $0.4844, MATIC displays technical signals suggesting the possibility of an uptrend. Here is an analysis of its important technical signals:
EMA values show a predominantly negative trend in both long and short time frames, indicating a likelihood of lower prices.
The MACD level suggests a downtrend. This coincides with the MACD signal line located below the MACD line, which is commonly seen as a bearish signal.
The RSI for MATIC is at 30.90, suggesting a neutral to oversold status. This indicates that the coin may be close to a possible move towards a bullish reversal.
THE Fibonacci Retracement levels show resistance at $0.6054 and $0.6954. Support levels are located at $0.3803 and $0.4703. Breaking above the resistance levels could start a positive momentum for MATIC.
Conclusion
XRP, BTC, and MATIC are showing different technical signals, although they are likely to experience a potential bull run. Each coin is facing strong resistance levels, which if breached could indicate a change in their current downtrends. Traders and investors should keep a close eye on important technical indicators such as EMA, MACD, RSI, and Fibonacci levels to take advantage of possible price changes in the short term.