Ethereum
XRP Enters Reversal Zone, Shiba Inu (SHIB) $0.00002 Level Is Dangerous, Will Ethereum (ETH) Survive?
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Shiba Inu retraced not too long ago and slowly gained ground in the cryptocurrency market, but retraced not too long ago. The trends we are seeing now are most likely linked to the global mode of de-risking the cryptocurrency market, and this could push investors even further.
This decline was caused by the risk aversion of the market as a whole. This mode of risk reduction is a common reaction of investors seeking to minimize high risks. As a result, SHIB has struggled to maintain its upward momentum.
SHIB is currently testing critical support levels. Close attention to global economic factors and regulatory developments has influenced asset price movements.
The 200-day EMA is often considered a long-term indicator of an asset’s health. If SHIB can hold above this support level, it can provide a basis for a potential reversal. Maintaining this level could signal market strength and stability. But be ready if SHIB breaking below this level, it could face further declines, possibly triggering additional selling pressure.
XRP hits important zone
XRP has finally reached a level that could be called a reversal zone. The asset’s reversal potential at around $0.47 is much higher than the levels we have seen before, except for the psychological threshold of $0.5. This is how things could happen.
XRP has been in a place where there has been heavy selling recently, a few weeks ago. However, the current price at which XRP trading at $0.47 is a very important level. This area attracts attention because it has supported price action in the past and therefore could be a level where the asset begins to move in the opposite direction.
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This is due to the current support and previous resistance which appears to be holding at the $0.50 level, considered a psychological level. The recent move towards this level indicates that XRP might be in a reverse mode as, more often than not, it tends to bounce around these levels. However, current market conditions do not provide a clear argument for a smooth reversal.
Of course, from a technical point of view, this recent price development has XRP sitting at a very critical support level. If the asset can stay above $0.47, it could surprise buyers looking to take advantage of a possible rebound, and if it cannot hold, the price will find lower support levels.
The Ethereum problem
Ethereum’s climb towards $4,000 has been much more difficult than it was in 2021. The second largest cryptocurrency on the market is showing unhealthy trends, especially after dropping towards $3,500. The most likely outcome we will see is a recovery past the 50 EMA, but the risks are still there.
Over the past few months, Ethereum faced increased volatility and selling pressure. This contrasts sharply with the upward momentum observed in previous years. The drop towards $3,500 has raised concerns among investors as it signals potential weaknesses in Ethereum’s market support. The 50-day EMA, currently around $3,332, is closely watched as a potential support level that could stop further declines and facilitate a recovery.
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The 50-day EMA is a crucial technical indicator that often serves as a support level in uptrending markets. If Ethereum manages to hold above this level, it could provide a basis for a rebound. However, overall market sentiment remains cautious, with many investors wary of further declines. This sense of caution is reflected in trading volumes, which have shown significant fluctuations, indicating uncertainty and lack of conviction among traders.
Several factors contribute to Ethereum’s current struggle. Market-wide de-risking, regulatory uncertainties and macroeconomic conditions have all played a role in waning enthusiasm, despite the ETF’s approval.