Bitcoin
Reversal Still Possible, Ethereum (ETH) Finds First Strong Support
Arman Shirinyan
The current state of the market raises some serious questions and many concerns
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XRP It hasn’t been the strongest asset on the market this year, but despite that, it doesn’t face any of the problems we see with Ethereum and Bitcoin. XRP successfully avoided trouble at $0.48. However, the lack of volatility could end up being a negative factor when the market reversal begins.
When compared to its peers, XRP has demonstrated exceptional stability over the past few months. Throughout the day, XRP managed to maintain its relatively stable price range, while Ethereum and Bitcoin experienced substantial fluctuations.
Its constant trading volume and the general attitude of the XRP community are two of the reasons for its stability. At the $0.48 support level, XRPs resilience is one of its most important current characteristics. This level supported potential upward movements, serving as a base and preventing further declines. The consistency of XRP’s price suggests that there is a committed investor base that is optimistic about the company’s future.
But there may also be a downside to this stability. Assets with minimal movement can occasionally go unnoticed by traders chasing quick profits in a highly volatile market. If XRP persists in trading in a tight range, it could lose the speculative interest that often drives notable price increases in other cryptocurrencies.
This lack of volatility for XRP It could be an advantage or a disadvantage as the market as a whole looks for a possible reversal. On the one hand, risk-averse investors looking for a safe haven may be attracted by its stability. However, XRP may have difficulty keeping up with more volatile assets that could see sharp increases in value if there is a significant change in market sentiment.
Bitcoin’s Critical Shot
Despite the fact that Bitcoin fell below the $65,000 price threshold, the first cryptocurrency could still show us a substantial reversal in the near future. The next major support for the asset is around $57,000, but if we see a rise in buy support now, there is nothing stopping BTC from reaching $70,000.
Several factors, including increased selling pressure from miners and a shift in general market sentiment toward caution, can be blamed for the recent decline in Bitcoin prices.
The current technical agreement suggests that a recovery may be possible. Essential support was provided by the 100-day moving average (orange line) of approximately $64,000. The way Bitcoin’s price moves right now will be crucial to predicting its evolution in the short term. course.
Liquidity distribution must also be taken into account. The chart provided shows notable liquidity above the $70,000 mark. This implies that if Bitcoin manages to gain traction, a considerable amount of liquidity will be just waiting to be released, which could stimulate a sharp increase in price. It is advisable for market players to monitor the number of transactions.
An increase in trading volume combined with an improvement in RSI could indicate the start of a reversal. Additionally, macroeconomic variables and encouraging reports on Bitcoin acceptance or regulatory clarity could provide the necessary impetus for a price rally.
Ethereum Collateral Damage
Ethereum did not prevent the blow that Bitcoin suffered. The second largest cryptocurrency on the market has plummeted to $3,300, which is not the lowest level for Ether we have seen this month. Just a week ago, ETH already tested this support level, which could be a sign of a reversal in the future.
The recent decline Ethereum it is part of a broader market trend where there is more pressure on sellers of major cryptocurrencies. However, ETH’s current position at the $3,300 support level is very important. Historically, this level has served as an important support, offering a solid foundation for future upward movements.
Ethereum appears to be ready for a reversal based on technical indicators. Right now, the 100-day moving average is acting as a crucial support level, and the daily chart’s relative strength index is approaching oversold values.
The increase in volume could indicate that buyers are entering the market at this support level, which could drive the price higher. Ethereum could attract more buying interest and pave the way for a potential return if it manages to hold above this crucial support.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, it focuses on news, articles with in-depth analysis of cryptocurrency projects, and technical analysis of cryptocurrency trading pairs.