Given the clear signs of weakening market momentum, Dogecoin's ambitious $1 target may face obstacles. Considering that Bitcoin recently experienced a pullback, impacting the overall altcoin market, Dogecoin's trend appears less optimistic. Tokens that seemed promising a few weeks ago are now experiencing a decrease in capital inflow and market interest. Dogecoin is directly affected by Bitcoin's significant price drop.
Bitcoin's dominance typically drives the rise of altcoins, but this dominance has weakened, and the overall market inflow has significantly slowed down. One important factor hindering Dogecoin's continued rise is the stagnation of capital flows. Dogecoin is currently trading at around $0.39, barely maintaining a recent high of about $0.50. Although the upward trend line on the chart still serves as a short-term support level, the decrease in trading volume indicates that traders have lost confidence in the market.
Additionally, indicators such as the RSI are below the overbought zone, suggesting that momentum is further consolidating, even facing a downward correction. Without significant catalysts, the goal of reaching $1 seems unlikely, but still possible. Dogecoin needs a substantial influx of market funds or a specific DOGE event to regain momentum.
However, given the poor market conditions and Bitcoin's weakness affecting market sentiment, Dogecoin faces the risk of a downturn. If Dogecoin falls below the trend line support, a larger pullback towards $0.30 or even lower levels may occur.
The correlation of XRP
Based on XRP's recent price movements, an important move towards higher levels may be imminent. Although a reversal is currently occurring, it seems to be a constructive correction rather than the beginning of a larger decline. The asset's momentum remains strong, which could pave the way for a recovery in the coming days. After briefly testing levels above $1.60, XRP is currently trading at approximately $1.42.
The price has returned to a key area where, due to recent declines, previous resistance levels have become support. This indicates that the asset has not reversed the trend but is consolidating recent gains. The 50 EMA, 100 EMA, and 200 EMA provide solid support below, with the exponential moving averages (EMA) showing a bullish trend.
The trading volume remains higher than the levels before the rise, indicating that the market is still interested in this asset. The RSI is also in the bullish zone, suggesting there is still potential for further increases, although it is slightly below overbought levels.
The recent setback may not be a sign of weakness, but rather a normal pause after a significant rise. In similar market conditions, XRP has shown resilience, quickly recovering from minor pullbacks. Support above $1.40 may help the asset gain momentum for subsequent tests of $1.60 or even higher levels.
Cardano maintains dominance
Despite the overall market trend, Cardano has exhibited extraordinary strength and resilience in its recent price performance. ADA is currently trading at approximately $0.99, having significantly recovered from the consolidation phase earlier this year, paving the way for potential future gains. Its ability to maintain momentum may be affected by the challenges associated with this upward trajectory.
Due to a recent rebound, ADA has broken through key resistance levels, particularly around $0.70 and $0.50, which have now become strong support levels. The significant increase in trading volume supports this breakout, indicating increased market interest.
The bullish trend of the 50 EMA, 100 EMA, and 200 EMA below the current price highlights the continued bullish outlook. ADA's ability to maintain above the key psychological level of $0.90 indicates strong confidence among buyers. Since the RSI remains high and has not indicated extreme overbought conditions, there may still be more upside potential before a correction occurs.
Despite ADA's good performance, it faces resistance in the $1.10-$1.15 range. Particularly, if market sentiment turns negative, this area may become a temporary obstacle. The slight decrease in trading volume over the past few trading days may also indicate a weakening momentum. The next significant support level is at $0.70, and if ADA cannot maintain above $0.90, a deeper pullback may target $0.50.
