U. Today – Important support is present at the EMA of 26, the level that has held the asset ground. The asset's short-term trajectory will probably be determined by the ongoing battle for this price. A rebound is likely if XRP manages to bounce there, which would signal a reversal of its current downward trend. However, there can be serious consequences if the above is broken.
In line with the downward trendline of XRP, the EMA of 26 acts as a strong support. Reversion is more important because of this combination which increases the pressure on the asset. An increase in the trading price, combined with a successful move above the 26 EMA could push XRP back to the $2.20 and $2.50 levels. Such diversification can stimulate interest in buying and will probably give market participants more confidence.
On the other hand, there could be negative consequences if XRP cannot overcome this obstacle. The asset may test lower support if it is rejected at this level which may confirm the bearish trend. Following $1.79 corresponding to the 100 EMA is $1.47 the first significant support level.
XRP's market conditions could be seriously weakened by a break below these levels that would push the price closer to $1.07, its next key support area. The relatively low trading volume that has accompanied XRP's recent moves is also related.
he wakes up
Ethereum has made a new high low which is a strong short-term bullish sign and is showing encouraging signs of recovery. This change means that the market may be preparing for a period of recovery that could reverse the recent decline. The lack of significant trading volume further supports the decrease in selling pressure marked by the low-to-high shape.
Lower volume may seem scary but it means bearish momentum is slowing down. Bulls can regain control in the coming weeks as a result especially if January sees new bulls enter the market. The EMA of 50, an important indicator of short-term market trends, is one of the important support levels that ETH is making above. The asset may soon test the resistance level at $3,544 if it continues to move higher.
Ethereum's reputation will probably be restored if it breaks above this level to open the door to testing at $3,800. But the general decline in markets is still cause for concern. Ethereum's full recovery is still hindered by broader market sentiment.
Increased trading volume and increased customer participation are necessary for ETH to maintain its upward trajectory. Ethereum may get a revolution in January. Historically there has been a resurgence of interest in the cryptocurrency market at the beginning of the year. ETH could pave the way for further recovery if it can maintain its current trend and stay above $3,000.
loses the USD
At the levels that have most affected the strength of Bitcoin (DXY) is still growing. Historically Bitcoin and DXY have had a volatile relationship: Bitcoin finds it difficult to sustain rallies when the dollar appreciates. As DXY gains ground, this volatility is happening again. Bitcoin has been under downward pressure due to the recent recovery in the DXY which is currently trading around 108.
Due to the Federal Reserve's continued tightening of monetary policies and strong economic data investors who invest in the US economy are reflected in the strengthening of the dollar. As a result, demand for dollar assets has grown driving away from riskier options like Bitcoin.
Because the dollar is getting stronger, Bitcoin's most recent rally has stalled. Bitcoin has lost momentum after trying to cross the psychological barrier of $100,000 and is now trading below key resistance levels. Since exiting the cryptocurrency market is often caused by a strong dollar, the growth of DXY has made it difficult for Bitcoin to maintain buying interest.
Bitcoin is seen as a hedge against the devaluation of fiat currency which explains this negative relationship. Investors turn to Bitcoin as a store of value when the dollar weakens. A rising DXY however reduces this and sends Bitcoin into a bear market. Future opportunities for Bitcoin to recover depend on a possible change in DXY's trajectory. In that case the stability or rarity of Bitcoin can gain ground and maybe start to rise again.