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Although XRP has made recent attempts to break through the $2.50 barrier, it is still unclear if it will be able to maintain this level. A confirmed breakout is far from certain based on the price action even though the asset has demonstrated some resilience in recent sessions. Right now, XRP is circling $2.54, just above the crucial psychological barrier of $2.50.
Nevertheless, the absence of significant volume supporting this move casts doubt on the validity of the breakout. Traditionally, a spike in buying pressure is needed for successful breakouts, and XRP's rally has not had the required momentum up to this point. Technical indicators offer a mixed picture as well. Despite being above the 100-day moving average, which is a bullish indication, XRP continues to encounter resistance close to the $2.70 mark.
The likelihood of a retracement is still high until it passes this threshold. The continuation of the consolidation between $2.30 and $2.60 is the most likely short-term scenario for XRP. The asset may lose steam and retest lower support levels if buyers are unable to force the price above $2.70.
However, XRP may acquire the strength required for a move toward $3.00 if it can maintain above $2.50 and generate consistent buying interest. This scenario is still unclear, though, considering the state of the market right now.
Dogecoin at it again
Dogecoin, which is circling $0.22, is once again testing a critical support level. The meme coin is having difficulty gaining bullish momentum after a protracted downtrend, which raises questions about whether this support will hold or if more declines are imminent.
Since it has been continuously failing to set new highs, DOGE has been under pressure for weeks.
Even though the overall cryptocurrency market is still erratic, DOGE has maintained a bearish structure due to its inability to overcome resistance levels. Now the most important area to keep an eye on is the $0.22 support level. Previous downturns have been stopped by this price zone, which has served as a strong defensive line. Nonetheless, a support level tends to deteriorate the more it is put to the test.
Yuri MolchanFurther selling pressure may be generated if DOGE is unable to maintain above $0.22, as the next significant support is located around $0.18. A recovery toward the $0.25-$0.26 range where the 50-day EMA is currently located may be possible if bulls are able to hold the $0.22 support.
Regaining this level could pave the way for additional recovery in the direction of $0.28. However, a notable uptick in buying pressure — which has been lacking in recent weeks — will be necessary to break above these levels. A breakdown below $0.22, on the other hand, would be a clear bearish indication and might trigger a further drop toward $0.18. The ability of DOGE to maintain this critical support level will be a major factor in determining its future given the state of the market.
Dogecoin, which is getting close to the significant support at $0.22, is at a turning point. DOGE's next significant move will depend on whether this level holds or breaks. A relief rally might occur if buyers intervene, but if this zone is not held, losses could quicken and reach $0.18. In the upcoming days, traders should keep a close eye on price movement.
Ethereum not there
Ethereum has been having trouble stabilizing following a string of abrupt price swings. ETH is currently trading at about $2,287, indicating a modest recovery, but the general mood of the market indicates that the asset is still far from being in a safe zone. Recently ETH recovered from the $2,100 support level in an effort to regain higher price ranges.
But even with this recovery, the asset is still in a precarious position. There is ongoing bearish pressure, indicated by the 50-day and 100-day moving averages' downward trend. That bullish momentum is waning is further supported by ETH's inability to maintain a price above $2,500.
On the positive side, a crucial resistance zone is still the $2,600-$2,700 range. Ethereum may regain enough strength to challenge the $2,900 mark if it can rise above this level. However, any breakout attempt is probably going to be brief if there is not a significant volume surge. Ethereum has responded to marketwide volatility more strongly than Bitcoin, which has managed to maintain relative stability.
Ethereum may experience another decline to $2,100 or less if it is unable to rise above $2,600 in the upcoming days. A decline below $2,000 would be the worst-case scenario, which would probably lead to more panic-selling.
Dan Burgin
Vladislav Sopov