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With its spectacular breakout and potential rally towards the $2 mark, XRP has caused a sensation on the cryptocurrency market. Given that XRP broke through important resistance levels and showed resilience by continuing its upward trajectory, the current price action indicates strong bullish momentum. Recent market optimism and increasing buying pressure have pushed XRP above the $1.40 mark.
The notable increase in trading volume indicates that more players are joining the market, which would contribute to the rally. Although the RSI is in the overbought zone, suggesting strong bullish sentiment. It also warns of possible short-term retracements of the asset. The golden cross formed by the 50 and 200 EMA further confirms the uptrend. Historically, this technical setup suggests the possibility of sustained bullish momentum in the medium to long term.
XRP is currently facing psychological resistance at $1.50 which, if broken, could bring it closer to $2. Breaking the $2 level could indicate a new stage in price discovery, as it is one that has not been tested in years.
The $1.00 and $1.20 values are crucial support levels on the downside. To maintain the bullish structure, it will be necessary to stay above these levels. If the price falls below, there could be a larger retracement. The overbought state of the RSI and the potential for profit-taking could lead to short-term corrections despite the promise of a breakout. This would, however, strengthen its bullish outlook if XRP consolidates above $1.20 before continuing its upward trajectory.
Dogecoin must grow
Dogecoin finds itself at a crucial juncture, facing a possible double top formation after its remarkable recent rally. A major retracement could occur if this trend, which is often considered a bearish signal, is unable to maintain its current levels.
Since its recent highs around $0.44, DOGE has seen a significant decline. The price is currently consolidating around $0.39.
After DOGE broke through important resistance levels due to strong bullish momentum, the retracement occurred. However, as evidenced by lower trading volume than the initial rally, the chart shows possible exhaustion. Although bullish momentum is still evident given the RSI hovering in the overbought zone, a double top trend could be confirmed if volume continues to decline or the $0.44 resistance is not broken.
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The immediate resistance level is located at $0.44. The double top scenario would be deemed invalid by a break above this level, which would allow DOGE to test $0.50 and above. The first significant support on the downside is the $0.30 level. The 50 EMA currently offers additional support at $0.26, where a break below could accelerate the decline.
In terms of possible situations, if the double top pattern materializes, traders could take profits and bearish momentum could intensify, which could lead to a significant correction for DOGE.
Nevertheless, DOGE may indicate a continuation of the uptrend if it consolidates above $0.39 and gains enough strength to face the resistance at $0.44. Its ability to maintain its current value and attract new customers will likely determine Dogecoin’s next course of action. A rally is still possible, but as there is a significant chance of a retracement, caution is advised. To predict the direction of the asset in the coming days, traders should keep a close eye on the volume and price action around the $0.44 resistance.
Danger on Ethereum’s radar
The double-top downtrend, which could indicate a reversal of Ethereum’s recent bullish momentum, is just beginning to form on the cryptocurrency. ETH has broken through important resistance levels following a powerful rally, but this pattern raises questions about a possible retracement that could hamper the price recovery.
A substantial price decline is often preceded by a double top trend, which usually signals a loss of buying momentum. Ethereum produced two highs on the daily chart but failed to breach the $3,400 barrier.
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The probability of ETH decline increases if it is unable to maintain its current values. This concern is reinforced by the fact that trading volume has started to decline, indicating a decrease in market fervor. As the bullish momentum slows, the RSI, which is currently trending lower from the overbought zone, lends credence to the idea that a correction could be imminent.
At $3,400, Ethereum is facing significant opposition. If this level is breached, the double top will be considered invalid and additional gains of up to $3,600 or more could be possible. However, the 50 EMA acts as a buffer at $2,980, which is the immediate support level on the downside.
A drop below this level could result in a more severe correction, which could lead to a ETH closer to higher support levels of $2,800 or even $2,750. The rally Ethereum has made over the past month could be jeopardized if the double top formation materializes and causes a significant retracement.