U.Today - may have found a strong foundation for a potential price bounce. Analyzing its recent trading behavior, there is a significant support level XRP has respected for over 50 days - the 200-day exponential moving average (EMA).
The 200-day EMA is a widely acknowledged benchmark used by traders to assess the long-term trend of an asset's price. It is calculated by applying more weight to the most recent data and less to older data, making it more responsive to price changes.
Source: XRP's ability to maintain above this EMA line is an encouraging sign, and it could potentially act as a strong foundation for a price bounce.
In May, the price of XRP briefly fell below this key support level. However, this drop was short-lived and did not confirm a bearish breakout, as XRP quickly rebounded above the 200-day EMA. Such a rebound highlights the robustness of this support and underscores its potential to catalyze a price bounce.
Another noteworthy observation is the descending trading volume during the ongoing bearish trend. In market analysis, a declining volume amid a downward price trend is often seen as a sign of weakening bearish momentum. This pattern suggests that the selling pressure is gradually reducing, and this could potentially set the stage for a trend reversal.
Ethereum needs a hand
One of the prime indicators suggesting bearishness is descending trading volume. A decline in trading volume, especially during a price rise, often indicates weakening upward momentum and could presage a potential price drop.
The lack of volume implies reduced interest and participation from traders, thereby reducing the buying power necessary to sustain a price rise.
Moreover, Ethereum has failed to breach the critical resistance level at around the $1,900 mark. This resistance level has proven to be a substantial barrier for ETH's price, which needs to be convincingly surpassed to signal a more bullish outlook. The inability to break past this level and the declining volume together paint a worrying picture for Ethereum in the short term.
However, it is not all gloomy in the Ethereum camp. An encouraging development is the observation that most bearish whales, who have been exerting significant selling pressure on , have largely unloaded their massive holdings.
This reduction in bearish pressure might mean that there is not enough sell-side activity to push Ethereum's price lower, possibly preventing a severe downtrend.
What's behind LTC and BCH?
LitecoinEDX Markets has recently closed a financing round, boasting impressive backing from industry heavyweights like Charles Schwab (NYSE:SCHW), Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital and Virtu Financial (NASDAQ:VIRT). What caught the market's attention was EDX's planned asset offerings, which include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
Given the highly regulated nature of the upcoming EDX exchange, the inclusion of LTC and BCH in their portfolio is seen as an endorsement of these currencies. This, in turn, has likely prompted a surge in trading activity as investors try to front-run the expected global influx of liquidity from new investors once these assets are listed on the platform.
The phenomenon is reminiscent of the market's reaction to new listings on prominent exchanges like Coinbase (NASDAQ:COIN) and UPbit in 2021. The announcement of new asset listings often generates a significant surge in trading activity and price for the listed cryptocurrencies. The current rise of LTC and BCH seems to be a similar anticipatory response to their impending introduction on the EDX platform.