XRP’s breakout did not trigger a rally in the overall cryptocurrency market
contents
- What’s next?
- Nobody is tracking the success of XRP
XRP’s massive 65% rally took the coin above the all-important 200-day moving average resistance level. Thankfully, XRP bulls were able to push the cryptocurrency above resistance, allowing for potential upward movement.
What’s next?
The breakout above the 200-day moving average is a major step towards a full reversal for XRP as the cryptocurrency is now gaining a foothold above the aforementioned resistance level and then awaits a cross between the 50-day and 200-day moving averages got to.
A cross would be the final signal for a reversal. Unfortunately, the two moving averages are far apart, meaning that XRP would need to consolidate above the 200 EMA or receive additional support from bulls that would start an accelerated rally.
If the coin’s price action accelerates, the moving averages will move towards each other faster, bringing the possibility of a bullish cross closer to reality.
To sue
Unfortunately, the trading volume of the assets has entered a downtrend and we are seeing a gradual easing and descending trend throughout the weekend’s trading session. With full trading beginning on Monday, net flow in the XRP markets could recover, which should help the asset embark on an accelerated rally.
It’s important to note that Ripple’s success in court was the main driver behind the massive growth of XRP we’ve seen over the past week, meaning it’s important to consider any legal risks when looking at the asset suspends.
Nobody is tracking the success of XRP
Unfortunately, other digital assets are not rushing to show similar performance as we saw on XRP last week. Bitcoin, for example, is continuously moving lower in the low volatility trading range. Such a tendency will most likely continue unless the cryptocurrency market faces a sudden recovery.
Luckily, the first cryptocurrency hit a key support level and is now consolidating around this year’s low. The positive scenario here would be an increase in accumulation by mid- or high-ranked whales and wallets.
Traditionally, consolidation attracts traders and investors willing to accumulate assets or lower the average dollar cost of their positions to maximize profits.
Apart from Bitcoin, Ethereum has not found any support from investors in the past few days. The industry’s second largest cryptocurrency has lost more than 27% of its value.
As we have mentioned in previous U.Today market reports, the main reason behind Ethereum’s problematic price action is the regulatory uncertainty investors are facing after the successful implementation of the merge update.
Despite the smooth transition to a PoS network, the SEC stated that Ethereum falls under US jurisdiction, meaning ETH holders could potentially be treated on an equal footing with security holders, causing numerous problems in holding, distributing, and trading the asset.
