PakGazette: Critical support is present at the 26 EMA, a level that has been holding the ground for the asset. The short-term trajectory of the asset will likely be determined by the ongoing battle at this price. A recovery could be possible if XRP manages to bounce there, which would signal a reversal of the current downtrend. However, there could be serious bearish repercussions if the above is broken.
In line with XRP’s descending trend line, the 26 EMA serves as dynamic support. A reversal is even more crucial due to this confluence increasing pressure on the asset. The increased trading volume, combined with a successful move above the 26 EMA, could see XRP return to the $2.20 and $2.50 levels. Such a breakout could reignite buying interest and would likely give market participants more confidence.
On the contrary, there could be serious repercussions if XRP cannot overcome this hurdle. The asset could test lower supports if rejected at this level, which would likely confirm the current downtrend. After $1.79, which corresponds to the 100 EMA, lies $1.47, the first notable support level.
XRP’s market structure would be severely weakened by a break below these levels, which could push the price closer to $1.07, its next significant support zone. The relatively low trading volume that has accompanied XRP’s recent moves is also concerning.
wakes up
Ethereum has formed a higher low, which is a strong short-term bullish signal and is showing encouraging signs of recovery. This change implies that the market may be preparing for a period of recovery that could reverse the recent downward trend. The lack of substantial trading volume further supports the decline in selling pressure highlighted by the formation of higher lows.
Lower volume may seem alarming at first glance, but it also means that bearish momentum is waning. As a result, the bulls could regain control in the coming weeks, especially if new capital enters the market in January. The 50 EMA, a crucial indicator of short-term market trends, is one of the critical support levels above which ETH currently holds. The asset could soon test the $3,544 resistance level if it continues to rise.
Ethereum’s reputation would likely be restored if it breaks above this level, opening the door for a test of the $3,800 range. But the overall downward trend in the market remains a cause for concern. A full Ethereum recovery is still hampered by broader market sentiment.
An increase in trading volume and greater buyer participation is necessary for ETH to maintain its upward trajectory. Ethereum may experience a turning point in January. Historically there has been a resurgence of interest in the cryptocurrency market at the beginning of the year. ETH could pave the way for a stronger recovery if it can maintain its current trajectory and stay above $3,000.
is losing against the USD
At levels that have greatly affected Bitcoin’s momentum, (DXY) continues to rise. Historically, Bitcoin and DXY have had an inverse relationship: Bitcoin finds it difficult to sustain rallies when the dollar appreciates. As the DXY gains ground, this dynamic repeats itself. Bitcoin has been under pressure to fall due to the recent rally in the DXY, which is currently trading around 108.
Due to the Federal Reserve’s ongoing monetary tightening policies and strong economic data, investor confidence in the US economy is reflected in the strengthening of the dollar. As a result, demand for dollar-denominated assets has increased, moving away from riskier options like Bitcoin.
Because the dollar is strengthening, Bitcoin’s most recent rally has stalled. Bitcoin has lost momentum after attempting to break the psychological barrier of $100,000 and is currently trading below important resistance levels. Since capital outflows from the cryptocurrency market are typically caused by a strong dollar, the growth of the DXY has made it difficult for Bitcoin to maintain buying interest.
Bitcoin is considered a hedge against the devaluation of fiat currencies, which explains this inverse relationship. Investors turn to Bitcoin as a substitute store of value when the dollar falls. However, a rising DXY diminishes this appeal and sends Bitcoin into a bear market. The future prospects for Bitcoin’s recovery depend on a possible reversal in the trajectory of the DXY. In the event that the price stabilizes or declines, Bitcoin could gain ground and perhaps start to rise again.
