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The cryptocurrency market recovered quite well on Sept. 11, pushing new boundaries of the bearish market further and potentially making even more progress than anticipated. The surge in RLUSD volume could suggest more careful positioning, though. In our most recent market prediction, we broke down how bulls started coming back.
RLUSDT volume spike
Around $200 million have moved through Ripple’s stablecoin, RLUSD, in the past day, marking a huge spike in trading volume. This spike is garnering attention throughout the cryptocurrency market, for a token that normally keeps a low-key, stable profile as a USD-pegged stablecoin.
There could be a number of causes for this kind of movement. In order to protect themselves from the volatility of more risky assets like Bitcoin or Ethereum, institutional players may be moving their money into RLUSD. Stablecoins are probably being used as a safe haven by some traders due to recent volatility in altcoins and significant inflows into exchanges.
The volume might indicate early activity from payment corridors opening up behind the scenes, given Ripple’s continuous push for adoption in cross-border payments and settlements. The main lesson learned from the spike is that RLUSD remains steady, bolstering trust in its peg mechanism.
AdvertisementIf the volume rise continues, it may signal the start of a larger uptake of Ripple’s stablecoin on payment and trading platforms. Investors should monitor whether the higher demand results in deeper liquidity across exchanges in the near future, as this would make the RLUSD a more dependable trading pair.
In general, speculation is less important than the overall positioning of the cryptocurrency market when it comes to RLUSD’s $200 million volume surge. In a way, it draws attention to the rising need for stability on an unpredictable market and suggests that Ripple’s stablecoin might become more significant in future global liquidity flows.
How good can DOGE be?
Dogecoin has performed surprisingly well, breaking through the $0.24 mark, which few had predicted given its slow performance in recent months. DOGE — which was once thought to be a meme-driven asset vulnerable to hype cycles — is now exhibiting resilience, defying general market uncertainty and proving its capacity to surprise both ardent supporters and doubters.
The 100-day and 200-day EMAs of Dogecoin have been a solid base for buyers, and the cryptocurrency has continuously respected important support zones in the $0.21-$0.22 range in recent weeks. With bulls intervening at pivotal points, the recovery from these levels and the break above short-term moving averages suggest that momentum is improving.
Additionally, there has been a slight increase in trading volume, which could indicate that fresh market interest is emerging. The RSI, which is close to 59, indicates that bullish pressure is increasing without being overbought. This allows for more upside before reaching harsh circumstances.
If DOGE stays above $0.24, the next logical resistance is located between $0.27 and $0.28, where earlier rallies this summer were capped. A run toward $0.30, which would represent a major psychological milestone, might be possible if that zone is successfully broken. The fact that this rally coincides with a decline in the enthusiasm surrounding meme coins is what makes it so intriguing.
It appears that technical strength and accumulation rather than speculative mania were the driving forces behind DOGE's move. Dogecoin may start to establish a reputation as a reliable mid-cap cryptocurrency with steady investor support if this trend keeps up. In summary, Dogecoin has resurfaced as a contender in the current market cycle after its unexpected breakout above $0.24 has dispelled bearish expectations.
Ethereum too quiet
With price action settling in the $4,300 range and volatility at all-time lows, Ethereum is exhibiting an unusual calm. The second-largest cryptocurrency believes that this quiet time is misleading and could be a risky prelude to a storm.
With tight candles and little volume, ETH has been trading sideways on the charts for more than a week. The market seems to be losing liquidity, which suggests that traders are holding off until something clear happens. In the past, these periods of inaction frequently came before violent outbursts.
Ethereum is holding at high levels without either buyers or sellers controlling the market, which is more concerning than just the lack of movement. This implies that it might release a surge strong enough to destroy everything in its path when momentum eventually returns.
The thesis is supported by technical indicators. There is still plenty of opportunity for growth as the RSI is neutral but balanced at 51. Ethereum, meanwhile, is still trading above its 50-day EMA, indicating that the bullish structure is still in place even in the absence of any immediate action.
Failure to hold current levels could result in a retest of $4,100 or even $3,800, while a clean breakout above $4,500 could pave the way to the eagerly anticipated $5,000 mark. Because there is less liquidity, there is a greater chance that a sudden surge in buying pressure will lead to a series of short liquidations, which would send ETH skyrocketing.
On the other hand, if bears take advantage of the situation, the same lack of liquidity may accelerate a sharp decline. Although Ethereum's silence is unsettling, it also prepares the market for the next pivotal action.
The storm has the potential to propel ETH to new heights with $5,000 as the main target if bulls make a strong comeback. The calm should be interpreted as a warning rather than a sign of safety until that time.
The general state of the market is cautiously positive. With the comeback of Bitcoin, Ethereum and other grands, smaller assets are gaining more traction and might show us long-awaited recoveries. Unfortunately, if stablecoin volumes keep on growing, it would be a sign of a bearish shift.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team