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XRP's Epic Battle Against Bears, Solana Breaks $100, While Ethereum Fights for Momentum

Published 01/23/2024, 12:58 AM
Updated 01/23/2024, 01:00 AM
XRP's Epic Battle Against Bears, Solana Breaks $100, While Ethereum Fights for Momentum

U.Today - XRP is currently locked in a fierce struggle with bearish forces. The digital asset, which operates within the Ripple network, is experiencing difficulty establishing a position above a critical technical indicator — the 200-day Exponential Moving Average (EMA).

The 200 EMA serves as an important barometer for the long-term trend and investor sentiment. For XRP, remaining below this level suggests that the asset lacks the bullish momentum needed to shift into an upward trajectory. This inability to secure a foothold above the 200 EMA raises questions about the stability of positive price action in the near term.

XRP/USDT Chart by TradingViewTechnical analysis shows that the 200 EMA is a dynamic level of resistance that many traders watch closely. A consistent failure to breach this mark can lead to a self-fulfilling prophecy where the resistance level grows stronger, as more traders set their sell orders around this key price point.

Ethereum keeps on struggling

Ethereum is showing signs of losing its upward momentum, failing to form a higher high — an indicator that market experts often interpret as a sign of an impending price correction.

The ETH chart reveals a telling pattern; the absence of a new higher high is significant. Typically, in a bullish market phase, the price of an asset creates a series of higher highs and higher lows. However, Ethereum's inability to push beyond its recent peak may suggest that the bulls are running out of steam and a reevaluation of market sentiment could be underway.

Analyzing the chart, the local resistance level has been a tough ceiling for Ethereum to break. This resistance, where sell orders tend to cluster, is acting as a barrier preventing further upward movement. On the flip side, the support level represents a price point with a concentration of buy orders, offering a potential cushion against a price drop. If Ethereum fails to uphold the support level, it could trigger a price breakdown, signaling a shift to a bearish trend.

If Ethereum's price continues to struggle, the scenario could unfold where the asset drops further, testing subsequent support levels. While the underlying fundamentals of Ethereum, such as network upgrades and adoption rates, remain robust, the short-term price action could still be subject to corrective forces.

Solana wants another round

The battleground of volatility on the crypto market continues, and Solana (SOL) has not been spared from its whims. Once a darling of the crypto world for its speed and efficiency, SOL has recently been up against a wall, struggling to surpass the crucial $100 mark. The price chart reflects a narrative of struggle and resistance, painting a picture of an asset in need of momentum.

The technical outlook for SOL is looking promising. After a period of bullish activity that piqued the interest of many investors, SOL has hit a snag near the $100 resistance level. This resistance level represents a significant psychological and financial barrier, as it is where sell orders tend to accumulate, putting downward pressure on the price.

Despite efforts to rally, the asset has been unable to generate the necessary momentum to overcome this threshold with ease and currently consolidates at it. One of the key factors influencing this lackluster performance could be the market's tepid reaction to the announcement of Solana phone Saga 2. The news, which might have been expected to inject some enthusiasm onto the market, failed to provide substantial support for Solana's price.

Looking at the chart, the local support levels are clearly delineated. The first line of defense for SOL lies around the $88-$90 price range, where previous dips have found buyers waiting. Should this level fail to hold, the next support may not emerge until it reaches the more robust $70 level, which could act as a stronger foothold for the price.

Conversely, resistance beyond $100 is now more formidable than ever. With each rejection, the resolve of buyers weakens, and the $100 level transforms from a mere price point into a crucial psychological level you should not miss.

This article was originally published on U.Today

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