XRP Fights for Survival Right Now, Shiba Inu (SHIB) Lost It, Will Solana (SOL) Finally Bounce?

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As a seasoned crypto investor with a portfolio that resembles a rollercoaster more than a steady climb, I’ve learned to read between the lines of market trends and technical analysis. The current state of XRP is reminiscent of a game of ping-pong between $2.05 (the 26 EMA) and $2.50 (resistance level), with sellers consistently winning the upper hand. The on-chain metrics, particularly the plummeting transaction activity, are concerning, but I’ve learned not to underestimate the resilience of crypto assets – they can bounce back when least expected!

On the chart, XRP appears stuck within a downward-sloping triangle formation, indicating a tough time for it. Despite a substantial surge previously, XRP is finding it hard to bounce back and break past crucial resistance points. The digital currency is currently probing the upper boundary of this triangle, which has historically acted as a strong barrier at approximately $2.17.

At present, the price of XRP is encountering significant resistance at around $2.50, as sellers have persistently thwarted any attempts for a price increase. If this level can be surpassed, it could potentially trigger a surge towards $2.80, a key region where XRP previously faced strong rejection during its recent peak. Should the bullish trend resume upon breaking past this resistance, further gains might follow. On the other hand, the 26 EMA or approximately $2.05 represents XRP’s closest support level.

Maintaining this level is important to prevent a quick drop towards the $1.87-$2.00 range, a critical area where buyers have stepped in before. However, current on-chain indicators for XRP pose a significant challenge. Notably, the amount of XRP transactions has plummeted by an astonishing 97%.

This decrease in transaction activity suggests that market confidence and overall usage of XRP as an asset could weaken. If there isn’t significant backing from users on the blockchain, it’s possible that XRP may struggle to maintain its price recovery. At this point, XRP finds itself at a critical juncture – a bullish rebound hinges on breaking through the descending triangle and reaching $2.5 again. However, if on-chain indicators continue to decline and the 26 EMA support is breached, additional price drops might be expected.

Shiba Inu breaches it

The important factor that fueled Shiba Inu’s recent price rise, the 26 EMA support point, has been violated. This breakthrough strengthens the bearish perspective by suggesting growing market fragility. Currently, Shiba Inu is displaying signs of fatigue as it failed to maintain momentum even when it momentarily stayed above this level.

The upward push for SHIB appears to have stalled due to a clear formation of a lower peak on the graph, indicating that sellers are now dominating the market trend. This bearish pattern suggests that the demand to buy has noticeably weakened.

At present, SHIB finds itself in a challenging position, hovering near $0.00002749 without regaining lost momentum. Near $0.00002640, where SHIB might find temporary relief, lies its immediate support. If the asset falls below this point, it could potentially test the resistance range of $0.00002200 to $0.00002300, which aligns with the 50 Exponential Moving Average (EMA).

On the positive side, the 26 EMA (Exponential Moving Average) and resistance point are now around $0.0000285 for SHIB. For SHIB to regain its bullish stance, it needs to significantly surpass this mark, which appears unlikely considering the current market conditions. Unfortunately, SHIB has been struggling to sustain its momentum after its recent surge. Moreover, a drop in trading volumes suggests decreasing investor enthusiasm and dwindling confidence.

Moreover, due to the volatile nature of the broader cryptocurrency market, SHIB’s price recovery faces extra pressure. Currently, SHIB appears to be forming lower peaks and struggling to establish strong bases, suggesting that its upward trend may be halted.

If buyers don’t act promptly, SHIB could potentially drop towards its 200 Exponential Moving Average (EMA) support around $0.00002200. Currently, Shiba Inu seems to be losing momentum, but regaining the $0.00002850 level is significant for any chances of a future recovery.

Downtrend end for Solana

In its efforts to resume its upward trend, Solana finds itself at a crucial juncture. After an impressive surge that propelled SOL from $150 to nearly $260, the asset is now grappling with selling pressure and potential supply shortages. Currently trading at $218.78, the 50 Exponential Moving Average (EMA) at $216 serves as an immediate barrier against further falls.

At present, this stage has remained stable, preventing a more severe downturn. However, a major hurdle for buyers persists, which is the resistance at the falling trendline approximately at $230. Overcoming this barrier could signal the start of a recovery and potentially lead to a test of $250. If the support at the current level can’t be maintained, the next potential drop would target around $194 near the 200 EMA for SOL.

A drop down to this point would support the current negative sentiment, likely driven by apprehension about the March token unlock event, which many investors view as a bearish catalyst. The uncertainty among investors is influenced by the upcoming $2.63 billion unlock event scheduled for March 1. Over the last month, Solana (SOL) has struggled due to concerns about oversupply, with approximately 11.2 million SOL (2.35% of the total supply) anticipated to be released into the market.

As an analyst, I find myself in agreement with Chris Burniske and other experts who suggest that the market has potentially factored in this event already. Nevertheless, there remains a lingering apprehension among investors. For Solana (SOL) to regain momentum, it’s crucial that bulls manage to reclaim the $230 mark and hold above it steadily. If successful, SOL could potentially surge towards the $250-$260 range in the short term.

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2024-12-16 03:11