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The recent surge in XRPThe price of has driven it to levels not seen in years. A possible reversal candle on the daily chart, however, suggests the trend may be slowing. As sellers regain control and buyers lose steam, these formations often signal a change in market sentiment, usually from a bullish to a bearish state.
At $2.76, the price of XRP is currently showing signs of hesitation close to the psychological resistance level of $3. Historically, this price level has proven to be a difficult obstacle, often serving as a barrier for traders to lock in profits. With a long wick above the body, the reversal candle indicates strong selling pressure at these high levels. XRP’s recent breakout from important moving averages, including the 50-day and 200-day exponential moving averages, indicates that the overall uptrend is still in place at the moment.
The asset is significantly overbought, however, based on RSI readings above 88, raising concerns about a potential short-term decline. In the event of a reversal, the previous breakout zone around $2.40 provides immediate support. The price could move towards the 21-day EMA, a level frequently seen in uptrends at $2.00, in the event of a more severe correction.
On the other hand, XRP might be able to move higher, possibly reaching $3.50 or even higher if it manages to invalidate the reversal signal and break above $3 with heavy volume. For this, however, increased market participation and a new purchasing impulse would be necessary.
The strong potential of Ethereum
Based on its recent price performance, Ethereum, the second largest cryptocurrency, could be gearing up for a surge towards the crucial $4,000 mark. Ethereum is currently trading near $3,610 after experiencing a significant uptrend that was reinforced by a number of bullish indicators visible on the chart. Ethereum has recovered above critical moving averages, which is one of its strengths.
With the 50-day EMA crossing above the 200-day EMA, a golden cross – a well-known uptrend – was indicated. As traders expect continued upward movement, this formation often generates more buying momentum. Ethereum is still above the 21-day EMA, which has served as a dynamic support level throughout this rally. Given that recent trading activity has been consistently higher than in the bearish months earlier this year, volume levels are also showing encouraging trends.
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This shows that investor confidence and interest are increasing, which is essential for Ethereum to challenge $4,000. However, Ethereum is not without its challenges. At 65, RSI levels are approaching overbought territory, which could cause a brief decline or consolidation. Before Ethereum attempts to break out higher again, the resistance level around $3,700 could act as a barrier. The overall market outlook for Ethereum remains positive, especially in light of the growing use of Layer 2 scaling solutions and the continued expansion of DeFi applications.
But if the momentum is lost, Ethereum could retest lower support levels of $3,300 or even $3,000. It will take consistent volume and bullish sentiment for Ethereum to reach $4,000. Strong buying interest and a clear break above $3,700 would pave the way higher. On the other hand, any signs of slowing momentum could cause a halt or even a reversal.
The Dogecoin flag
On its daily chart, Dogecoin displays an ascending flag pattern, which is a traditional bullish continuation pattern. With a narrowing channel and higher lows and higher highs, the price has entered a consolidation phase after its spectacular rally in November. Dogecoin is holding above important moving averages such as the 21-day EMA, which serves as immediate support at $0.38 and is currently trading at around $0.418.
The structure of the flag model depends on this dynamic support. An extension of the previous uptrend can be indicated by a break above the flag’s upper trendline, which is currently around $0.44. As is often the case when flags form, volume decreased somewhat during the consolidation.
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A notable increase in buying volume with an initial target of $0.50 could validate the breakout. If the momentum continues, DOGE could attempt to reach the psychological level of $0.60, which corresponds to its previous resistance zones. However, caution is required. Should DOGE If the price fails to hold the 21-day EMA, it could move closer to the $0.36 support level.
The 50-day EMA currently sits at the $0.30 region, which could be retested if this zone is reached, thus invalidating the flag pattern. Short-term pullbacks are possible, as indicated by the current RSI hovering around 71, which is just outside the overbought zone. As a speculative asset, DOGE continues to gain traction during times of increased retail interest, but overall market sentiment remains positive.