Disclaimer: The opinions expressed by our editors are their own and do not represent those of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.
The so-called “Santa Rally” Bitcoinwhich is typically a time of optimism and rising prices during the holiday season, is starting to show signs of possible danger. After a brief decline below the 50 EMA at $95,000, Bitcoin managed to recover and is currently trading near $97,000. There is growing concern that this rally may eventually form a lower high, which is a traditional sign of a continuing downtrend.
A downtrend would be validated by a lower high, which could trigger a sharp price decline. Bitcoin may struggle to maintain the positive momentum seen in previous months if it fails to surpass previous highs of around $104,000. Bitcoin may move towards important support areas if unable to regain higher levels; The 100 EMA at around $84,500 is a crucial level to watch.
Rapid changes in sentiment and momentum for Bitcoin, which has seen increasing selling pressure in recent weeks, pose a threat. Despite the asset’s attempts to rebound, volume indicators paint a mixed picture. Bitcoin’s recent rally may not last if this trend continues, and investors hoping for more gains could fall into a trap.
This is consistent with the general ambiguity surrounding the future of Bitcoin. If the market does not clearly break $100,000, it could be more susceptible to a more severe correction, with $84,500 and even $76,000 as possible targets.
Although the Santa Claus Rally Bitcoin may seem promising at first glance, traders and investors find it increasingly risky. Given the possibility of a weaker top forming, this rally is crucial, and as the market moves through the holidays, caution is encouraged. To revive bullish confidence, there must be a clear break above resistance; otherwise, the downward trend could become even more significant.
XRP remains under pressure
As its downward trend is still very present, XRP is still under pressure. Over the past few weeks, the asset has seen a steady decline, creating a bearish channel that has brought it closer to important support levels. In order to decide whether it will stabilize or continue to decline, XRP is currently testing its 26 EMA.
The continued downtrend draws attention to the unpredictability of XRP market conditions. Combined with a decline in trading volumes, the descending channel indicates that investors are reluctant to make a strong return to the market. If the general state of the market deteriorates, this lack of conviction makes XRP more vulnerable to selling pressure.
Related
XRP has managed to maintain a relatively stable position near its 26 EMA despite the dire near-term outlook. A prolonged hold above this level could provide some respite for the asset, as it has historically served as crucial support during times of volatility. However, a break below this level would likely accelerate the decline and bring XRP closer to the $1.80 to $1.50 range, which houses the 50 EMA and other historical supports.
The general asset structure should also prompt market participants to be cautious. Concerns over XRP’s medium-term outlook are raised by its inability to stage a robust recovery or break out above important resistance levels around $2.50. Reversing bearish sentiment and restoring investor confidence requires a successful breakout above this trend. resistance.
Right now, XRP’s position is both crucial and vulnerable. The broader downtrend presents serious risks, even though the asset has demonstrated resilience near its 26 EMA. A breakout of the 1.80 level could indicate a larger correction, so traders and investors should pay attention to it. However, if stability is maintained above the 26 EMA, a slow recovery could be possible; however, significant buying pressure would be required to change the trend.
Is DOGE relevant?
The fact that DogecoinTrading volume is still low, a trend that has persisted over the past few weeks indicating its momentum is fading. Reflecting the current uncertainty surrounding this asset, the lack of notable market activity is both worrying and intriguing. A lack of demand is often linked to low volume from a bearish perspective, which can intensify downward pressure.
Related
DOGE struggled to break through important resistance levels, lingering at $0.34, without making any progress. The general downward trend that began after its rise to $0.48 continued due to this stagnation. Due to low trading activity, which indicates that market participants are reluctant to engage, DOGE is likely to experience further declines. There are, however, some positive aspects to the attenuated volume.
In many cases, low volume during a downtrend can indicate the end of selling pressure. This could mean the bearish momentum is losing steam, which could lead to a reversal, or at least a brief retracement. Around $0.28, where the 100 EMA lies, Dogecoin could find support if the bulls manage to intervene at this point. A recovery from this level could pave the way higher – perhaps to $0.37.