Date: Fri, Dec 27, 2024, 08:16 AM GMT
In the cryptocurrency market since last week, we are witnessing a healthy correction after bullish rallies that started in early November. Amid this correction, Bitcoin (BTC) has retraced from its recent all-time high of $108K to its current price of $95K. Following Bitcoin’s lead, top-performing altcoins XRP and ADA have also experienced pullbacks, with XRP’s monthly gains reducing to 53% and ADA entering negative territory.
Source: Coinmarketcap
XRP (XRP):
After the correction, $XRP is consolidating within a symmetrical triangle pattern and currently holds a key support level at $2.17.
XRP (XRP) 4H Chart/ Coinsprobe
If the support zone holds, there is potential for XRP to bounce and eventually break out to the upside, targeting higher levels. On the other hand, if the support at $2.17 fails, XRP could slide further toward the lower boundary of the symmetrical triangle, which acts as a secondary support level.
Indicators:
MACD: The histogram remains slightly negative, but the MACD and Signal lines are converging, suggesting the bearish momentum is weakening. A bullish crossover would signal potential upward momentum.
RSI: The RSI is currently around 34.58, indicating that XRP is oversold. This strengthens the case for a rebound in the short term if buying pressure increases.
Cardano (ADA):
Similarly, $ADA is consolidating within a falling wedge pattern, which is generally a bullish reversal setup. It is holding a critical support level at $0.87.
Cardano (ADA) 4H Chart/ Coinsprobe
If the support zone holds, ADA has the potential to bounce and break out to the upside, possibly leading to a trend reversal. However, if the $0.87 support fails, the price could dip further, targeting lower levels within the wedge.
Indicators:
MACD: The histogram remains neutral to slightly bearish, but the convergence of the MACD and Signal lines indicates a possible momentum shift.
RSI: At 39.38, ADA is nearing oversold conditions, similar to XRP. This suggests the potential for a reversal if bulls step in.
Outlook:
Both XRP and ADA are holding at critical support levels within their respective patterns. The technical indicators, including MACD convergence and oversold RSI readings, suggest that the bearish momentum is weakening for both cryptocurrencies. However, confirmation of a breakout or breakdown will depend on whether these support zones hold in the coming days.
Investors should watch for increased trading volume and decisive price action to confirm the direction of the next major move.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
