Looking at the daily chart of AVAX/USD, Avalanche (AVAX) price has moved below the 20-day exponential moving average (EMA). This is a signal of a change in price momentum and possible weakening of buying pressure.
AVAX is currently trading at $50.65 and is above the support level at $47.02. If the market reaction to the Avalanche9000 update remains negative, the price could test this support level. If the support is broken, AVAX could drop to $41.34. On the other hand, if the market sentiment turns positive, AVAX could aim to break the resistance level of $55.10 and reach a new yearly high of $65.39.
Long-Term Strategy for Solana (SOL) Investors$SOL
Solana (SOL) investors hold 27% of the total supply through purchases made in the last 6-12 months. This indicates strong demand expectations for 2024 and investors are shifting to long-term strategies. According to Glassnode data, the majority of Solana’s supply was accumulated in 2024; specifically, 26% of the total supply was accumulated in the last 6-12 months. These investors have a more positive outlook on Solana’s future price action.
The SOL price is currently trading around $133.34, indicating the possibility of further gains. If the current trend continues, the value of SOL could increase significantly by 2025. From a technical perspective, SOL has formed a bull flag formation on the daily chart. This formation indicates that the price will rise to $290. In a much more positive scenario, the SOL price could climb to $500. However, if market conditions deteriorate or investor supply decreases, the price could fall to $189.36.
Significant Increase in Flow to XRP Exchanges$XRP
Ahead of the global launch of Ripple’s new stablecoin RLUSD, the flow of XRP onto exchanges has increased significantly, suggesting that some XRP holders are attempting to capitalize on the excitement in the market by selling their tokens for short-term gains.
Ripple’s RLUSD stablecoin, which was approved by the New York Department of Financial Services (NYDFS) last week, will begin trading globally on Tuesday. The dollar-denominated stablecoin will be traded on platforms such as Uphold, MoonPay, Archax and CoinMENA. Exchanges such as Bitso, Bullish and Bitstamp are also expected to list RLUSD soon. The price of XRP rose nearly 10% after the news, but the rise led some investors to sell their tokens. According to Coinglass data, XRP flows to exchanges have reached $28 million today.
Risk of XRP Price Drop
The increase in XRP flows to exchanges indicates that selling activity is accelerating, which could put downward pressure on the market price. Furthermore, XRP’s MACD indicator also supports this negative outlook. The MACD line (blue) is below the signal line (orange), indicating a bearish trend.
However, if the RLUSD launch changes the market trends and the selling pressure decreases, the XRP price could make a jump towards its multi-year high of $2.90. However, if the selling pressure continues, the XRP price could drop to $2.31.
