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The price of XRP has been hovering around $1.10 for the past four days, indicating that it has entered an apparent stagnation phase. There are concerns about whether the upward momentum has run its course or whether this is a brief consolidation before another move, given the lack of movement that followed a notable rally earlier in the month.
Volume declined sharply following a spike in buying pressure during the last rally. This drop could indicate a lack of demand since it implies that buyers are leaving the market. XRP may struggle to maintain its current level if fewer players drive the price higher.
XRP could return to lower support levels if it keeps pace with $0.95 and $0.85, becoming crucial areas for buyers to watch. Caution is also advised by the RSI (Relative Strength Index). While it is still in the overbought zone, suggesting there was significant buying momentum previously, the lack of follow-through could cause a retracement as profit-taking increases.
Returning to the psychological $1.00 level is a possible scenario that could serve as support if tested. But a drop below this mark could increase selling pressure and stimulate XRP lower.
Traders should now closely monitor market sentiment and volume profiles. The likelihood of a price decline increases if volume does not increase and buyers do not return to the market. On the other hand, a sharp increase in volume could reignite bullish sentiment and indicate that XRP’s slumber could be a sign of an impending breakout.
Dogecoin’s pivotal moment
A possible double top pattern is forming on Dogecoin’s daily chart, suggesting that the cryptocurrency could be approaching an all-time turning point. Two distinct spikes at comparable price levels indicate a bearish reversal trend that could portend trouble for the meme-based cryptocurrency in the future.
DOGE the price is currently trading near the $0.40 mark, seemingly unable to maintain its bullish momentum. Given the second peak of the double top formation, this hesitation raises the possibility that the asset will encounter strong resistance. The likelihood of a reversal increases if the price fails to break above this resistance level.
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Usually, when bulls are struggling to push prices higher, the double top pattern signals weakening buying pressure. If the neckline, located between $0.36 and $0.37, is broken with an increase in volume, this trend can cause the price to drop substantially. DOGE. The market could retest lower support levels such as $0.28 and $0.26 following such a breakdown.
This bearish scenario gains additional weight due to volume profiles. Following DOGE’s recent dramatic rise, trading volume has started to decline, which is often a sign of a trend reversal. The asset may be more susceptible to selling pressure if volume is lower during resistance breakout attempts, which could indicate that buyer interest is waning.
However, a significant volume breakout above the $0.40 resistance level could invalidate the double top trend and indicate that the uptrend will continue. For now, traders should keep a close eye on important levels, particularly the $0.40 resistance and the $0.36 neckline.
PEPE is bleeding
In just six days, Pepe lost 21% of its value due to strong downward pressure. This drop comes after PEPE saw a 120% rise, which put it in the public eye but also made it more volatile. There is still reason to believe that PEPE could regain its footing, although the correction may seem worrying as long as it remains at critical support levels.
The chart shows that PEPE is retreating from its most recent highs, and a decline in trading volume suggests that speculative activity has cooled. During the rally, the $0.00002100 level served as resistance; however, it could now turn into a crucial support zone. PEPE can stabilize and try to consolidate before starting another upward movement if this level maintains.
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The next significant support below $0.00002100 lies at $0.00001550, which is in line with the 50-day exponential moving average and previous accumulation zones. If selling pressure increases, this level could serve as a stronghold for the bulls. However, a break below this level could signal a larger correction and possibly a retest of the $0.00001180 level, where the 100-day EMA currently sits.
Following its parabolic run, the asset is undergoing a much-needed correction, as indicated by the Relative Strength Index (RSI), which shows PEPE get out of overbought territory. Although the risk of further overheating is lower, this highlights the need for investors to be cautiously optimistic. In the short term, the success of PEPE will depend on its ability to maintain critical levels of support.