XRP, Bitcoin and Cardano (ADA) Technical Analysis: Stalemate and Market Correction

XRP has failed; the reversal attempt began back on June 24. The asset has been gradually gaining some strength on the market but has failed to get past

XRP has failed in its attempt at a reversal, which began on June 24. The asset has shown some gradual strength on the market but has been unable to get past the 26 EMA, indicating that the current movement lacks momentum or strength.

The inability of XRP to break above the 26 EMA suggests an absence of buying pressure on the market. If the 26 EMA is not broken, it indicates that the bulls are not in control. The 26 EMA often acts as a crucial resistance level.

Any price movement without significant volume is likely to be erratic and short-lived. The broader cryptocurrency market has seen volatility, with key assets such as Ethereum and Bitcoin showing declines. In such a scenario, it becomes difficult for altcoins like XRP to gain traction. The overall bearish sentiment in the market is heavily impacting the price action of XRP.

Considering that the RSI is currently in the 40-50 range, it appears that XRP is neither overbought nor oversold. This neutral RSI reading aligns with the lack of significant momentum in either direction. For XRP to stage a strong recovery, we need to see the RSI move above 50, accompanied by rising volume and positive market sentiment.

If XRP fails to hold above the 26 EMA, we could see a retest of lower support levels. Another key support is present at $0.46, which has historically acted as a floor for the asset. If this support is broken, we can expect to see a more significant decline in XRP, potentially testing even lower levels. However, a strong break above the 26 EMA, backed by rising volume, could indicate a potential reversal. XRP definitely needs more buyers.

Bitcoin return possible?

The cryptocurrency market is seeing more sellers putting pressure, and Bitcoin is no exception. Considering the extreme volatility of the last few days, the price action of BTC must continue to hold above the $60,000 threshold. This level is being tested as we speak, considering the strong support it has provided in the past.

Several technical indicators suggest that Bitcoin may face difficulties in the future. The RSI in the 30-to-40-range indicates that BTC is getting close to the oversold territory. This may, in turn, present a buying opportunity, considering the strong selling pressure that is currently driving the market. It is also crucial to keep an eye on the moving averages, especially the 50-day and 200-day EMAs.

If Bitcoin manages to hold above $60,000, we could see a potential rebound. The first target would be the $65,000 resistance level which, if breached, could pave the way for a rally toward $70,000. However, for this to happen, there needs to be a significant increase in buying volume and positive market sentiment.

On the flip side, if Bitcoin fails to hold the $60,000 support, the next major support lies around $57,000. A drop below this level could invalidate the 200-day EMA as a support, pushing Bitcoin into a more bearish zone and potentially triggering a stronger sell-off.

Cardano's stalemate

ADA's pricing performance has been poor in spite of its potential and strong community support. With its price stuck around $0.41, the chart shows that Cardano has been finding it difficult to gain traction. The 50-day and 200-day EMAs in particular are critical resistance levels for any meaningful upward movement in the cryptocurrency but have not been broken by it.

Technical analysis shows that Cardano is in oversold territory because its RSI is in the lower range. This may indicate an opportunity for long-term investors to buy. But the low trading volume is a worrying indication that the market as a whole is not interested. At best, investor sentiment has been uncertain about Cardano.

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