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Contents
- Arbitrum declines again
- Cardano shows some promise
The XRP market is facing a turbulent phase as important technical indicators point to the possibility of the crisis worsening. Close analysis of the XRP price chart reveals a major breakout below the 200-day moving average, a bearish signal that could herald a further decline in the price.
This breakout is accompanied by what appears to be an impending bearish EMA crossover, as the short-term moving average prepares to cross below the long-term average. Such a crossover would likely confirm the dominance of bearish momentum, reinforcing the risk of a continued decline for XRP.
Adding to the worrying technical setup is the bearish volume amid the downtrend. Typically, downward volume can indicate a lack of conviction in a downtrend, but it can also indicate that a significant price decline has not attracted new buying interest, which could lead to a longer-lasting bear market.
Focusing on specific price levels, XRP is currently facing a clear resistance level at around $0.66, which it needs to break to change the current bearish narrative. On the downside, the support level to watch is around $0.42, a breach of which could significantly undermine market confidence and lead to an acceleration of selling pressures.
For a reversal scenario, the bulls will need to push the price back above the 200-day EMA and initiate a bullish crossover of the EMA to turn the scenario around. A significant increase in buying volume, which could be caused by positive developments in Ripple’s ongoing legal challenges or adoption news, could help spur such a reversal.
Arbitrum declines again
The cryptocurrency market is witnessing a major price correction of Arbitrum (ARB), the native token of the largest layer 2 scaling solution for Ethereum.
The ARB chart is showing a notable bounce from its recent highs, suggesting a bearish reversal pattern that may extend further. The assets have rapidly lost value, which may be a symptom of the current sentiment towards Ethereum and associated L2 solutions, as the market sees renewed interest in ecosystems like Solana, known for their high throughput and low transaction costs.
Chart analysis reveals a critical local support level at around $1, which is a necessary threshold for ARB to maintain to prevent further slippages. On the upside, resistance to watch is around the $1.8 level, which has previously limited upward movements and may continue to be a drag on the recovery.
For a reversal scenario in the foreseeable future, ARB will need to regain support and consolidate above $1.05 support, perhaps driven by enhanced user adoption or technological milestones within the Arbitrum ecosystem that could reignite interest and confidence.
Cardano shows some promise
Cardano has recently ignited a flame of optimism on the chart. On January 19, the “candle of hope” was lit as the ADA saw a sharp reversal from the 100-day moving average.
This reversal candle represents not just a temporary respite, but a potential shift in market sentiment. While the medium-term trend has been bearish, lower volume accompanying a bearish price movement indicates that selling pressure is weakening.
Looking at specific levels, ADA found strong support at around $0.4126, a line that has been historically defended by bulls and could serve as a starting point for a potential recovery. On the other hand, the asset faces immediate resistance at $0.5591. This level has been a stubborn obstacle to upward movements and must be broken convincingly for ADA to regain its upward momentum.
For a bullish reversal scenario to materialize, the ADA would need to build on the “Hope Candle” momentum and push through resistance, ideally with increasing volume to validate the move. A sustained break above this level could attract marginal investors back into the market, further boosting the recovery.
Furthermore, if broader market conditions stabilize and positive developments within the Cardano network continue, such as progress in scalability or new partnerships, these could serve as catalysts for a reversal from the current downtrend.