U.Today – suffered a massive blow after hitting the $71,000 threshold, losing 14% of its value and falling below $60,000. However, there is a realistic possibility of a reversal in the foreseeable future as BTC has reached the lower threshold of the sideways market channel.
First of all, BTC’s price action suggests a significant buy zone at $58,000, a historic support level. The 200-day moving average or the black line in the chart and this support level suggest that a Bitcoin recovery could be imminent.
The volume profile shows more encouraging signs. Due to the recent decline, trading volumes have increased, suggesting that buyers are still very interested in the product at these discounted prices. Increased activity typically signals an impending price reversal, as it represents a buildup of investors anticipating future gains. Moving averages provide an additional layer of understanding.
Although these levels often serve as dynamic support and resistance zones, the chart shows that Bitcoin is currently trading below the 100-day and 50-day exponential moving averages. A break above these moving averages in Bitcoin will indicate a possible trend reversal and a move towards bullish momentum.
There is currently no strong driver for the asset, nor is one likely to emerge in the foreseeable future unless the ETF drives the market as a whole.
gets ready
XRP is about to make another reversal attempt to break the downtrend that started after the long-lasting sideways trend. We are aiming for the breakout of the 26 EMA and a clear stabilization and reversal. However, right now, momentum is what is really needed.
The chart shows that XRP has struggled to maintain its bullish momentum and has continued to fail to break through significant resistance levels. To indicate a possible trend reversal, XRP needs to break above the 26-day Exponential Moving Average (EMA). This level has served as a barrier, and a successful breakout could signal the start of an uptrend.
However, volume analysis shows that traders’ opinions vary. Trading volume has spiked occasionally, but not consistently enough to facilitate a long-term uptrend. For XRP to sustain its reversal attempt, significantly higher buying volume is required. This would give the market the momentum needed to break through resistance levels and keep prices higher.
According to the Relative Strength Index (RSI), XRP is currently in the neutral zone. There is potential for an upward move as it indicates neither overbought nor oversold conditions.
aims higher
Dogecoin will test the $0.13 price threshold in the next few days, which suggests the current market composition. We will most likely see a test of the 200 EMA threshold and a subsequent breakout if there is enough momentum.
The 200-day exponential moving average (EMA) is represented by the $0.13 mark on the chart, indicating that Dogecoin has struggled to overcome significant resistance levels.
A successful break above this level, which has historically been a key resistance point, could signal a bullish trend reversal. There may be cause for concern as volume analysis indicates that trading activity has been relatively muted. Dogecoin needs a significant increase in buying volume to continue its uptrend.
The momentum needed for a convincing breakout of the 200-EMA could be hampered by a lack of consistently high trading volumes. Also worth noting are the relative positions of the 100-day and 50-day EMAs. Currently, Dogecoin is trading below both of these moving averages, which usually indicates a downtrend.
However, DOGE would be a very bullish indicator if it could build enough buying pressure to break through these levels. Some additional information is provided by the Relative Strength Index (RSI).
The fact that Dogecoin’s RSI is currently circling the neutral zone suggests that there is still potential for an upside move without overbuying. A rise above the 50-point threshold on the RSI would boost confidence in a potential bullish breakout.
This article was originally published on U.Today.
