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On the verge of a failure, Solana is displaying some concerning indicators. SOL has now lost momentum following a robust rally in April precisely at a crucial resistance level: the 200 EMA, which is at about $162. Bullish and bearish trends have traditionally been separated by this level, so the recent rejection raises questions about the future of the altcoin.
SOL's price action indicates that it has failed to sustain its upward trajectory. Buying pressure appears to be rapidly descending as evidenced by the obvious breakdown below the ascending trendline support that sustained the rally from late March to the present. When coupled with an increase in selling volume, the setup suggests that a more significant correction may be about to occur. Technically speaking, the relative strength index or RSI has begun to roll over from overbought territory, suggesting that sellers are taking control and momentum is waning.
The $140 and $130 marks are the immediate support levels to keep an eye on. The next crucial zone to keep an eye on is close to $120, which is a psychological and technical support area if Solana is unable to locate a strong bid at these levels. Here the sentiment of the market as a whole also matters. If Ethereum and Bitcoin keep exhibiting hesitancy or decline, Solana's precarious situation might rapidly deteriorate.
SOL might move further into correction territory if there isn't any new buying interest and significant volume to push it back toward the $160 region. Traders and investors should exercise caution for the time being. Unless the asset can regain important levels and rekindle bullish momentum in the upcoming sessions, Solana's remarkable recovery rally may be in danger of reversing precipitously.
Bitcoin is back
As it aims to reach the eagerly anticipated $100,000 milestone, Bitcoin is displaying fresh strength. Strong technical patterns and market-reported liquidity dynamics have supported the cryptocurrency's recovery from a period of consolidation. Important moving averages like the 50-day and 100-day EMA have recently been breached by Bitcoin, transforming them into possible support levels on the price chart.
Despite recent volatility, buyers are regaining confidence and are willing to push Bitcoin higher as evidenced by the breakout and the notable volume surge that followed. What's more intriguing is that the liquidation heat map shows a sizable cluster of liquidity that is situated just above and below the current price. Around the $96,000 and $94,000 levels there are enormous liquidation zones.
Gamza KhanzadaevThis fosters an atmosphere in which price changes can happen swiftly. When liquidity accumulates at specific price points, it pulls the price in that direction as traders liquidations and stop-losses are triggered.
If bulls are able to squeeze out short positions, Bitcoin could easily see a significant upward move with these liquidation clusters in place. Particularly if the $96,000 barrier is broken, the market's current configuration indicates an ideal launching pad toward the $100,000 psychological level. Still, prudence is vital. Both upward and downward price swings could occur quickly due to the dense pockets of liquidity.
As Bitcoin fights through these zones, traders should expect volatility spikes. The market structure and technicals of Bitcoin indicate that the path to $100,000 is becoming increasingly apparent overall. It might only take a few bold moves for the flagship cryptocurrency to enter a historic new price range, provided support levels hold and liquidity keeps increasing slightly above the current price.
XRP is stuck
The next big move of XRP may be determined by this pivotal moment. The 100-day EMA is a key technical level that XRP is currently hovering around, indicating life after weeks of slow trading and difficulty gaining momentum. According to the chart, XRP has successfully broken through the upper limit of the descending wedge in which it had been stuck for several months.
Usually bullish, this pattern suggests a possible breakout. However, the 100 EMA level, a barrier that XRP has been fighting for days without winning, is a formidable obstacle to the cryptocurrency. The fact that volume levels are beginning to increase indicates that traders are getting ready for a more significant move. A wave of buying pressure could push XRP's price sharply higher toward the next resistance zone, which is around $2.50, if it can maintain a breakout above the 100 EMA.
Conversely, if XRP is unable to overcome this level, it may revert to consolidation or even experience a corrective pullback with support levels at $2.18 and $2.00 reentering the market. Because of the RSI indicator's current neutrality, XRP has ample opportunity to rise without encountering overbought conditions right away.
Vladislav Sopov
Dan Burgin