Even though it is short-term bearish the symmetrical triangle itself indicates a longer-term bullish trend. In the triangle the higher highs and lower lows correspond to the continuous tug-of-war between bears and bulls. On the other hand, the fact that XRP is unable to breach the upper trendline indicates that the bulls are currently losing the battle. Notwithstanding this, the general outlook for XRP is still cautiously positive.
There could be a bullish continuation if the asset is able to break above the crucial resistance level around $0.60. The bullish structure would hold if XRP were to decisively break above this level potentially leading to a retest of higher targets like $0.65 and beyond. The asset may drop to test lower support levels around $0.52 if the bears are successful in pushing XRP below the triangle’s lower boundary. Short-term market sentiment may change as a result of this refuting the bullish thesis.
For XRP the next few days will be critical since traders will be watching for a verified breakout or breakdown from this symmetrical triangle pattern. Either scenario would be fueled by an increase in trading volume, which would show which side of the market is in control. The bull-bear battle is still going strong for the time being but a major change in direction could be approaching.
A more forceful and protracted bullish rally that builds on the present momentum may be possible if those levels are broken. It’s crucial to keep in mind that Toncoin has been generally declining for a number of months even with this encouraging breakout. In other words even though the price action lately has been promising the overall downward trend that TON has seen cannot be entirely reversed.
Nevertheless, caution is still recommended. If the 50 or 100 EMA is not broken there may be a retrace that takes the price back to earlier levels of support. However, if the rally persists, TON might be about to enter a recovery phase, especially given the consistent inflows that have been supporting its upward trend.
The 50 EMA and 100 EMA are crucial resistance levels even though BTC has crossed $60,000 in value. These two exponential moving averages are important tools for figuring out the short- to medium-term direction of prices. Since Bitcoin has been moving in a downward trend for a few months, it is still advisable to exercise caution until it breaks above these resistance levels.
Bitcoin must make a clear break above $62,000 in order to properly indicate a confirmed bullish trend reversal. In addition to representing a breach of the EMAs, this level would suggest that Bitcoin has acquired sufficient momentum to buck the recent decline. Maintaining a price above $62,000 would reassure investors and traders that Bitcoin is prepared for long-term growth, which might trigger another surge toward earlier all-time highs.
Retracement could occur if these crucial levels are not crossed and the momentum is not maintained. Should the price revert to the lower support levels around $57,000 or even $55,000, it might do so within the descending channel. To determine the next move, market players are keeping a close eye on these technical levels.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
