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In a significant development for Ripple, the U.S. Securities and Exchange Commission's (SEC) appeal accusing the company of unlawful sales of securities has been denied. This news had an immediate impact on XRP's price, which saw an 8% rise and is currently a hot topic, making up almost a quarter of the top 100 asset discussions.
As of the latest data, XRP is trading at $0.5312, successfully breaking through the local resistance level at $0.52. It is also trading above the 50 Exponential Moving Average (EMA), a commonly used indicator to identify the market trend. However, it is essential to note that assets generally need more time to gain a foothold above resistance levels to confirm a breakthrough.
The favorable court ruling has undoubtedly acted as a catalyst for XRP's price movement. However, traders and investors should exercise caution. While the asset has broken through the $0.52 resistance level and is trading above the 50 EMA, it is not necessarily a finalized breakthrough. Market conditions can change rapidly, and it is crucial to keep an eye on trading volumes and other technical indicators to gauge the asset's future performance.
The ruling has not only boosted XRP's price but has also increased its visibility in market discussions. This could attract more investors and traders to XRP, further fueling its price. However, the asset is still in a precarious position. A sustained trading volume and a stable position above the 50 EMA are needed to confirm this upward trend.
Shiba Inu falls from grace
In a concerning development for Shiba Inu (SHIB) enthusiasts, the meme cryptocurrency has lost a crucial support level, plunging its price and raising questions about its immediate future. According to recent data, SHIB is currently trading at approximately $0.00000722, well below its key support level of $0.00000733.
The loss of this pivotal support level has opened the floodgates to a potential local bottom for Shiba Inu. The asset had been trading above this level for a considerable period, providing investors with a sense of security and optimism. However, the recent dip has shattered this illusion, leaving many to wonder if SHIB can recover in the short term.
The broader cryptocurrency market has recently returned to a sideways trend, which poses a significant risk for assets like SHIB. Sideways markets are often precursors to downtrends, especially for volatile assets that lack strong fundamentals. In such a scenario, the absence of a strong support level could exacerbate SHIB's decline, making a recovery even more challenging.
Given the current market dynamics, it is unclear whether Shiba Inu will be able to regain its lost ground. The asset would need to climb back above its previous support level and establish a new higher low to instill confidence among investors. However, the sideways market trend does not offer much hope for such a bullish reversal in the immediate future.
ADA loses battle
Cardano (ADA) recently faced a significant difficulty. The asset failed to break through the 50 Exponential Moving Average (EMA) resistance level and is now trading at approximately $0.2562, according to recent price analysis. This comes as a disappointment for traders who were eyeing the 21 EMA, which was on its way to cross the 50 EMA — a preliminary signal for a bullish reversal.
The Relative Strength Index (RSI) for ADA was nearing the overbought zone, indicating that the asset might have been overvalued in the short term. This could mean that the failure to break through the 50 EMA might be a pause or a cooling-off period for the asset, rather than a complete reversal of its bullish trend.
What makes this situation more intriguing is that the market has been showing signs of a sideways trend, which can quickly transform into a downtrend if key support levels are not maintained. For ADA, the 21 EMA will now act as a crucial support level that traders should keep an eye on. If ADA fails to maintain this level, we could see a further decline in its price, adding to the woes of its investors.
Gamza Khanzadaev
Godfrey Benjamin
