Enormous XRP Breakthrough: $2 in Sight, Dogecoin (DOGE) at Pivotal Price Level, Ethereum (ETH) Forms Very Dangerous Pattern
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
With its spectacular breakout and potential rally toward the $2 mark, XRP has been causing a stir on the cryptocurrency market. Given that XRP has broken through significant resistance levels and shown resilience in continuing on its upward trajectory, the current price action indicates strong bullish momentum. Recent market optimism and growing buying pressure caused XRP to soar above the $1.40 mark.
The notable rise in trading volume indicates that more players are joining the market, which would help the rally. Although the RSI is in the overbought zone, which suggests strong bullish sentiment. It also warns of potential short-term retracements in the asset. Further confirming the bullish trend is the golden cross formed by the 50 and 200 EMAs. Historically, this technical pattern suggests the possibility of sustained upward momentum over the medium to long term.
XRP is currently facing psychological resistance at $1.50 which, if broken, could push it closer to $2. Breaking the $2 level could indicate a new stage of price discovery because it marks a milestone that has not been tested in years.
The values of $1.00 and $1.20 are crucial support levels on the downside. Sustaining the bullish structure will require holding above these levels. If the price breaks below, there may be a more significant retracement. The overbought state of the RSI and the potential for profit-taking could lead to short-term corrections despite the breakout's promise. It would, however, strengthen its bullish outlook if XRP consolidates above $1.20 before continuing its upward trajectory.
Dogecoin has to push
Dogecoin is at a crucial juncture, facing a possible double-top formation following its remarkable recent rally. A major retracement could result if this pattern, which is frequently regarded as a bearish signal, is unable to hold its current levels.
From its recent highs around $0.44, DOGE has experienced a significant decline. The price is currently consolidating around $0.39.
After DOGE broke through significant resistance levels due to strong upward momentum, the retrace occurred. However, as evidenced by lower trading volume than during the initial rally, the chart displays possible exhaustion. Although bullish momentum is still evident given the RSI hovering in the overbought zone, a double-top pattern could be confirmed if volume continues to decline or if the $0.44 resistance is not broken.
Gamza KhanzadaevThe immediate resistance level is located at $0.44. The double-top scenario would be deemed invalid by a breakout above this level, which would allow DOGE to test $0.50 and higher. The first significant support on the downside is the $0.30 level. The 50 EMA currently offers additional support at $0.26, where a break below this could hasten the decline.
In terms of conceivable situations, if the double-top pattern materializes, traders may take profits and bearish momentum may increase, which could result in a significant correction for DOGE.
Nonetheless, DOGE may indicate a continuation of the bullish trend if it consolidates above $0.39 and gains sufficient strength to confront the $0.44 resistance. Its ability to maintain its current value and draw in new customers will probably determine Dogecoin's next course of action. A rally is still possible, but since there is a significant chance of a retrace, prudence is advised. To predict the direction of the asset in the upcoming days, traders should keep a careful eye on volume and price action around the $0.44 resistance.
Danger on Ethereum's radar
The bearish double-top pattern, which could indicate a reversal in Ethereum's recent bullish momentum, is just beginning to form on the cryptocurrency. ETH broke through important resistance levels following a powerful rally, but this pattern raises questions about a possible retracement that might impede its price recovery.
A substantial price decline is frequently preceded by the double-top pattern, which usually signals a loss of buying momentum. Ethereum has produced two peaks on the daily chart but has been unable to break through the $3,400 barrier.
Arman ShirinyanThe probability of ETH declining rises if it is unable to hold onto its present values. This worry is heightened by the fact that trading volume has begun to drop, indicating a decrease in market fervor. As the bullish momentum slows, the RSI, which is currently trending lower from the overbought area, lends credence to the idea that a correction may be imminent.
At $3,400, Ethereum is encountering significant opposition. If this level is broken, the double-top would be deemed invalid and additional gains toward $3,600 or higher might be possible. However, the 50 EMA acts as a buffer at $2,980, which is the immediate support level on the downside.
A decline below this level might lead to a more severe correction, which might drive ETH closer to the stronger support levels of $2,800 or even $2,750. The recovery that Ethereum has made over the past month could be undermined if the double-top formation materializes and causes a large retracement.
Related articles
Alex Dovbnya
Yuri Molchan
Dan Burgin