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XRP Unexpectedly Drops to 50-Day Moving Average as 40% of Rally's Gains Are Gone

Tue, 02/07/2023 - 17:00
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Arman Shirinyan
Markets are taking some serious hits as bulls are slowly giving up on pushing industry upward again
XRP Unexpectedly Drops to 50-Day Moving Average as 40% of Rally's Gains Are Gone
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The growth of the cryptocurrency market at the beginning of 2023 might be reaching a logical conclusion.

XRP's complicated state

XRP has dropped to a local support level after experiencing a strong 20% price increase since the beginning of the recovery of the cryptocurrency market. The asset reached its 50-day moving average, which is commonly regarded as a main support level for assets moving in an uptrend. However, it should be noted that XRP has yet to enter a prolonged uptrend, as indicated by the placement of moving averages on the daily chart of the asset.

XRP chart
Source: TradingView

At the time of writing, XRP is trading at $0.39 and has gained less than 1% in value over the last 24 hours. Despite its recent strong performance, it is worth mentioning that approximately 40% of XRP's gains during the recent rally have already been lost.

Lido making comeback

In the last two days, Lido Finance (LDO) has made a double-digit gain and has become one of the strongest performing assets on the whole cryptocurrency market. The rise in demand for staked Ethereum liquidity is the most likely reason for this unexpected performance.

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Lido Finance aims to provide decentralized liquidity solutions for staked Ethereum. In the past 48 hours, LDO has gained more than 14% to its value, making it one of the most sought-after digital assets. The increase in staking volume on the Ethereum network is one of the factors that has contributed to LDO's strong performance.

However, there are some risks for LDO holders, including the continuously rising competition on the market. At the time of the launch of Ethereum staking, Lido Finance was dominating the market, with almost all the existing staking volume going through only one provider. The situation has changed today, but Lido Finance remains the biggest and most commonly chosen solution for gaining liquidity while staking ETH.

DYDX stays in uptrend

The token has been successfully avoiding the recent selling pressure from big whales, including Justin Sun. Despite Sun's continuous transfer of DYDX on Binance, which was most likely for selling purposes, DYDX has managed to hold its ground and even show signs of a potential rally continuation.

DYDX saw a 140% rally before dropping by over 20%. However, the asset has already reversed and gained 6% to its value, showing that it has the potential to continue the rally. This sudden turn of events can be attributed to the strength of the DYDX community, which has shown unwavering support for the asset even amid selling pressure from whales.

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The strong performance of DYDX can also be seen as a positive sign for the overall cryptocurrency market, as it shows that even with selling pressure from big players, smaller assets can still hold their ground and potentially rally. This could attract more investors to the market and increase overall market confidence.

At press time, DYDX is trading at $2.89 and gaining less than 1% to its value in the last 24 hours. With the asset's recent performance and the support of its community, DYDX could be one to watch in the coming days and weeks. However, it is important to remember that the  cryptocurrency market is a highly volatile one, and investing in any asset comes with its own risks.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.