XRP Might Be Recharging for Another Spike up, Following 25% Rally: Crypto Market Reivew, October 3
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Despite ending the last week in the red, altcoins are showing some positive dynamics at the beginning of this week as most assets show mild gains. However, the low volatility and trading volume are signs of the weakness of bulls, and any negativity will most likely push the market to a correction.
One of the strongest gainers on the market today is Cosmos (ATOM), with a more than 2% price increase in the last 24 hours. However, the positivity on the asset does not come without negativity, as it broke below the important support level of the 50-day moving average. The lack of a foundation beneath ATOM might be a worrisome sign as the asset's movement in the downtrend might accelerate from here.
In contrast to ATOM, Shiba Inu is battling with a 50-day moving average resistance level and trying to break through with the poor support of SHIB bulls. The low trading volume and lack of inflows will most likely cause a continuation of the consolidation around the current price. A breakthrough is still possible but will most likely have almost no effect on the token's volatility.
Bitcoin is moving on strong foundation
The $18,000 support seems to be one of the strongest levels Bitcoin has faced recently as bulls are unable to push the price of the first cryptocurrency below the fundamental threshold for almost a month now.
The current price level of the first cryptocurrency seems to be the lower border of the consolidation channel Bitcoin has been moving in for the last few months. The upper border, according to the performance of the first asset, is at approximately $24,000.
Alex DovbnyaHowever, the lack of trading volume and inflows into the asset shows that it will most likely continue to move sideways, as no major events are upcoming on the cryptocurrency or financial market in general.
The only thing that may shake up both markets is the potential default of one of the biggest investment banks in the world, Credit Suisse. The story behind the potential $1.5 trillion market crash has been covered by U.Today.
XRP is recharging
Success in court was the main fuel for the XRP's unusual 55% rally, but as the dust settled, the cryptocurrency quickly reversed, losing almost 50% of what it gained previously. However, the bulls were able to push it back up.
As for now, XRP's price performance is forming something similar to a symmetrical triangle – a common indicator for volatile assets that go through short-term and volatile rallies. After the asset tops out and consolidates, bulls and bears start pushing the asset in their own ways, which then creates a volatility spike in either direction.
It is hard to tell which way XRP will go after it reaches the end of the triangle, but the descending volume suggests that the cryptocurrency will most likely continue to drop further unless unusual buying activity appears on the market, following Ripple's success in court against the SEC.
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Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team