As predicted a few days ago, the market has dropped to around $92,000, nearing the Christmas market where liquidity decreases. Today's price continues to test and confirm the $92,000 support level. Xiao Miao suggests building a position at this level, as historical data shows that the market often performs well after Christmas.
Key levels:
Support level: $92,000 (near the lower edge of the channel).
Resistance level: $96,000 (near the upper edge of the channel).
Trend analysis:
Short-term: Prices encounter resistance and retreat near the upper edge of the channel, finding support at the lower edge.
Long-term: Bitcoin overall remains in a long-term upward trend, with prices fluctuating within an upward channel.
Bitcoin's price fell below $93,000 on Monday, hitting a nearly one-month low, as the Christmas rally failed to materialize, with cryptocurrency charts showing red. Less than a week ago, Bitcoin had broken through $108,000, setting a new historical high, driven by the holiday season. However, the Federal Reserve's hawkish stance, suggesting that rate hikes may be reduced next year, pressured Bitcoin's price.
The Federal Reserve last week lowered the benchmark interest rate by 25 basis points to 4.25%-4.5%, stating that the rate cuts next year will be less than market expectations. Although inflation has significantly slowed, it remains above the 2% target, with the latest data at 2.7%. Federal Reserve Chairman Powell stated that the rate cuts provide more room for future policy adjustments.
In the past week, Bitcoin fell 13%, while Ethereum and Solana declined by 18% and 15%, respectively. Among altcoins, XRP fell 12%, whereas Dogecoin dropped 22% due to market sell-offs.
Foreigners are on holiday today and tomorrow! The 27th will see options expiration, and if there is a significant spike, we can directly get in. Trump will take office next month, and related narrative tokens are worth preemptively positioning!
DOGE
Dogecoin (DOGE) experienced a sharp 45% correction after hitting a high of $0.48, but successfully held the critical support level of $0.30, leaving hope for a rebound. Currently, the price is around $0.31, rebounding from a low of $0.26, boosting investor confidence and suggesting that a solid support level may have been found.
Interestingly, the current trend is similar to 2017, and history shows that after a sharp correction, Dogecoin typically experiences a strong rally. If this pattern repeats, Dogecoin may be preparing for a new wave of rapid ascent.
However, $0.31 remains a key resistance level; if it cannot break through and establish support, it may enter a sideways consolidation phase, affecting the recovery process. If it breaks through $0.36, it could trigger a rapid rebound, paving the way for further increases.
XRP
XRP has increased by 366.94% over the past six months, reflecting strong interest and active trading in the cryptocurrency market. In the last month, XRP rose by 77.14%, showing strong upward momentum, but fell by 7.81% last week, indicating short-term volatility. Currently, XRP is trading between $2.03 and $2.73, with key resistance at $3.02; breaking this could test $3.73, while support is at $1.61 and secondary support at $0.9041.
Technical indicators show market consolidation, with the 10-day and 100-day moving averages at $2.24 and $2.28, respectively. The RSI is at 42.72, indicating that XRP is neither overbought nor oversold, and the MACD shows slightly negative values, suggesting a mild bearish sentiment. Monitoring these indicators will help gauge XRP's short-term price trend.
XLM
In the past four trading days, XLM has consolidated between $0.34 and $0.39, approaching the key support level of $0.347. If this support holds, XLM is expected to rise by 25% to $0.45. However, if the price drops below $0.33, it may fall to $0.22.
The daily chart for XLM shows prices diverging from the 200 EMA, still maintaining an upward trend. As it approaches the support level, long-term holders and traders are showing increased interest in XLM. Data shows that outflows of XLM from exchanges reached $6.5 million, indicating buying pressure and potential upward momentum.
The long-short ratio for XLMUSDT on Binance is 1.87, indicating a bullish sentiment, with 65.4% of top traders holding long positions. Based on comprehensive technical analysis and on-chain indicators, bulls currently dominate, and XLM may hold around the $0.35 level.
As of the time of this report, DOGE is priced at approximately $0.358, down 3% in the past 24 hours, with trading volume decreasing by 19%, indicating reduced participation under market uncertainty.
That's all for today's article. We are currently in a bull market, with a lot of excitement, and we share crypto insights every day.