PakGazette – The so-called “Santa Rally”, usually a time of optimism and price increases during the holiday season, is beginning to show signs of possible danger. After a brief drop below the 50 EMA at $95,000, Bitcoin has managed to recover and is currently trading near $97,000. There is growing concern that this rally could eventually form a lower high, which is a traditional sign of a continuation of the downtrend.
A bearish pattern would be validated by a lower high, which could trigger a sharp price drop. Bitcoin may find it difficult to maintain the positive momentum seen in previous months if it cannot break above previous highs around $104,000. Bitcoin may move towards important support zones if it fails to regain higher levels; the 100 EMA at around $84,500 is a crucial level to pay attention to.
Rapid changes in sentiment and momentum for Bitcoin, which has been experiencing increasing selling pressure in recent weeks, pose a threat. Despite the asset’s attempts to recover, volume indicators point to a mixed picture. Bitcoin’s recent rally might not last if this pattern continues, and investors hoping for more gains could fall into a trap.
This is consistent with the general ambiguity surrounding the future of Bitcoin. If the market fails to make a clear move above $100,000, it may be more susceptible to a more severe correction, with $84,500 and even $76,000 as possible targets.
Although the Bitcoin Santa Rally may seem promising at first glance, it is increasingly considered risky by traders and investors. Given the potential for a lower high to form, this rally is crucial and as the market moves forward through the holidays, caution is advised. To rekindle bullish sentiment, there must be a clear break above resistance; Otherwise, the downtrend could gain more strength.
remains pressed
Since its downtrend is still in effect, XRP is still under pressure. Over the past few weeks, the asset has been falling steadily, creating a bearish channel that has brought it closer to important support levels. To decide whether it will stabilize or continue falling, XRP is currently testing its 26 EMA.
The persistent downtrend draws attention to the unpredictability of XRP market conditions. When combined with declining trading volumes, the descending channel indicates that investors are reluctant to return strongly to the market. If the overall state of the market deteriorates, this lack of conviction makes XRP more susceptible to selling pressure.
XRP has been able to maintain a comparatively stable position near its 26 EMA despite the dire short-term outlook. A sustained hold above this level could offer some respite for the asset as it has historically served as crucial support during volatile times. However, a break below this level would likely accelerate the decline and bring XRP closer to the $1.80 to $1.50 range, which houses the 50 EMA and other historical supports.
The overall structure of the asset should also make market participants act cautiously. Concerns about XRP’s medium-term prospects arise from its inability to mount a strong recovery or overcome significant resistance levels around $2.50. Reversing the bearish sentiment and restoring investor confidence requires a successful break above this resistance.
At the moment, XRP’s position is crucial and vulnerable. The broader downtrend presents serious risks, even though the asset has demonstrated resistance near its 26 EMA. A break of the 1.80 level could signal a more significant correction, so traders and investors should keep an eye on it. However, if stability remains above the 26 EMA, a slow recovery is possible; However, it would take significant buying pressure to change the trend.
Is DOGE relevant?
The fact that China’s trading volume remains low, a trend that has persisted over the past few weeks, indicates that its momentum is waning. Reflecting the current uncertainty surrounding the asset, the lack of notable market activity is both concerning and intriguing. Lack of demand is often related to low volume from a bearish perspective, which can intensify downward pressure.
DOGE has struggled to break through important resistance levels, holding at $0.34, without advancing. The overall downward trend that began after its rise to $0.48 has continued as a result of this stagnation. Due to low trading activity, which indicates that market participants are reluctant to commit, DOGE is susceptible to further declines. Still, there are some positives to the muted volume.
In many cases, low volume during a downtrend can signal the end of selling pressure. This could mean that bearish momentum is waning, which could trigger a reversal, or at least a brief pullback. Around $0.28, where the 100 EMA lies, Dogecoin may find support if the bulls can intervene at this point. A recovery from this level could pave the way for one to rise further, perhaps to $0.37.
