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Hovering within a descending triangle pattern on the chart, XRP is clearly struggling. Although XRP experienced a huge spike earlier, it is currently struggling to recover and surpass significant resistance levels. The digital asset is currently testing the upper limit of the descending triangle, which has served as a significant resistance zone at $2.17.
XRP is currently facing the strongest resistance at $2.50 where sellers have consistently rejected upward moves. Overcoming this level might lead to a push in the direction of $2.80, a crucial area of rejection during the asset's most recent peak. Bullish momentum may return and allow for additional upside if XRP is able to break out of the current descending triangle. Conversely, the 26 EMA or $2.05 is XRP's nearest support.
If this level is not maintained, it could hasten the decline toward the $1.87-$2.00 range, a crucial demand zone where buyers have previously intervened. Right now, XRP's on-chain metrics present a significant obstacle. As previously mentioned, the volume of XRP payments fell by an astounding 97%.
This drop indicates a decrease in transaction activity, which erodes market sentiment and the asset's overall network usage. XRP may not be able to maintain its price recovery if there is no strong on-chain support. Right now, XRP is in a make-or-break situation. A bullish recovery requires breaking above the descending triangle and taking back $2.5. Further downside pressure though might be anticipated if on-chain metrics continue to deteriorate and the 26 EMA support is broken.
Shiba Inu breaches it
A crucial indicator that was previously the basis of Shiba Inu's most recent price surge, the 26 EMA support level, has been breached. This breakdown reinforces the bearish outlook by indicating increasing market weakness. SHIB is now exhibiting signs of exhaustion after failing to gain traction despite momentarily holding above this level.
The bullish momentum for SHIB has been essentially terminated by a distinct lower high formation on the chart. The fact that sellers are now in control of the trend and that buying pressure has substantially decreased is confirmed by this bearish structure.
SHIB is currently struggling to stay afloat and is hovering around $0.00002749 after failing to recover lost ground. In the vicinity of $0.00002640, where SHIB may experience short-term respite, is the immediate support. The asset may test the $0.00002200-$0.00002300 range, which corresponds to the 50 EMA, if it breaks below this level.
On the upside, the previously broken 26 EMA and resistance are currently located around $0.0000285. SHIB would have to decisively break above this level in order to restore its bullish outlook, which seems improbable given the state of the market. SHIB's main problem is that it has not been able to maintain momentum following its recent rally. Additionally, a decrease in trading volumes indicates waning investor interest and eroding confidence.
Furthermore, the unpredictability of the larger cryptocurrency market puts additional strain on SHIB's price recovery. Now that SHIB is making lower highs and is having trouble finding solid support, the asset's rally seems to have stopped.
SHIB may be dragged to its 200 EMA support, which is close to $0.00002200, if buyers do not intervene quickly. Though Shiba Inu has obviously lost steam for the time being, regaining $0.00002850 is still crucial for any hopes of a recovery.
Downtrend end for Solana
As the asset attempts to regain its bullish momentum, Solana is at a critical crossroads. Following a robust rally that saw SOL soar from $150 to almost $260, the asset is currently facing pressure from sellers and impending supply issues. Solana is currently trading at $218.78, and the 50 EMA at $216 is providing instant support.
This level has so far held, averting a more serious collapse. But a significant obstacle for bulls is still resistance at the descending trendline around $230. Above this level, a clean breakout might indicate the beginning of a recovery and pave the way for a $250 test. The next downside target is located at $194 around the 200 EMA, if SOL is unable to maintain the current support.
A decline to this level would validate ongoing pessimism, which is probably being fueled by anxiety over the March token unlock event, which has been priced in as a bearish trigger. The confidence of investors is being impacted by the $2.63 billion unlock event that is scheduled for March 1. Over the past month, SOL has underperformed due to worries about excess supply as 11.2 million SOL (2.35% of circulating supply) is expected to hit the market.
Even though Chris Burniske and other analysts think the market has already priced this event in, people are still wary. Bulls must recover $230 and hold above it for Solana to rebound. SOL could target $250-$260 in the near future if it is successful. However, a decline to the $194-$200 range might occur if the 50 EMA support is not maintained.
U.Today Editorial Team
Dan Burgin
