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U. Today – critical support is found at 26 EMA, this level has held ground for the asset. The short-term direction of assets will likely be determined by this price war. If XRP can climb up there, a recovery is possible, indicating a reversal of the current downtrend. However, if the above is broken there can be serious depressive effects.
Along with the descending XRP trend line, the 26 EMA is acting as dynamic support. Reversal is even more critical as it increases the stress on the property due to this combination. Increased trading volume, coupled with a successful move above the 26 EMA, could push XRP towards the $2.20 and $2.50 levels. Such a crash could stimulate buying interest and possibly give market participants more confidence.
Conversely, if XRP fails to overcome this hurdle, there could be serious consequences. If the asset is rejected at this level, it may test lower supports, possibly confirming the current bearish trend. Following $1.79 is the first prominent support level at $1.47 which corresponds to the 100 EMA.
XRP’s market structure would be severely weakened by a break below these levels which could push the price closer to the next critical support zone at $1.07. So is the relatively low trading volume that has accompanied recent XRP activity.
will arise
Ethereum has made a higher low which is a strong short-term bullish signal and is showing encouraging signs of recovery. This change indicates that the market may be preparing for a recovery period that could reverse the recent downward trend. The lack of abundant trading volume further supports the selling pressure highlighted by the high low formation.
Low volume may seem alarming at first, but it means the bear is slowing down. As a result, bulls may regain control in the coming weeks, especially if new capital enters the market in January. The 50 EMA, an important indicator of short-term market trends, is one of the important support levels that ETH currently holds above. If the asset continues higher, it may soon test the $3,544 resistance level.
If the name Ethereum breaks above this level, it will probably recover, opening the door to test the $3,800 region. But the overall downward trend of the market remains a concern. Ethereum’s full recovery is still hindered by broader market sentiment.
Increased trading volume and increased buyer participation are essential to ETH’s continued upward trajectory. Ethereum may experience a turning point in January. Historically, there has been a resurgence of interest in the cryptocurrency market at the beginning of the year. If ETH can maintain its current trajectory and stay above $3,000, it could pave the way for a strong recovery.
The dollar is losing.
Bitcoin (DXY) is still growing at the worst-hit levels. Historically, Bitcoin and DXY have had an inverse relationship: Bitcoin has difficulty sustaining rallies when the dollar rises. As DXY gains ground, this volatility is happening again. The recent recovery in the DXY has put pressure on Bitcoin, which is currently trading at 108.
The continued monetary tightening policies of the Federal Reserve and strong economic data reflected investors’ confidence in the US economy in the strengthening of the dollar. As a result, demand for dollar-denominated assets has increased, driving away riskier alternatives such as bitcoin.
Bitcoin’s recent rally has stalled as the dollar strengthened. Bitcoin has lost momentum after trying to break the $100,000 psychological barrier and is currently trading below important resistance levels. As outflows from the cryptocurrency market are frequently driven by a strong dollar, the rise in DXY has made it difficult for Bitcoin to maintain buying interest.
Bitcoin is seen as a hedge against the collapse of fiat currency values, which explains this inverse relationship. As the dollar depreciates, investors turn to Bitcoin as a substitute store of value. A rising DXY, however, reduces this appeal and sends Bitcoin into a bear market. Bitcoin’s future recovery prospects depend on a potential reversal in DXY’s trajectory. If Bitcoin stabilizes or declines, it may gain ground and possibly start to rise again.
