For traders hoping for another breakout this bounce off the 26 EMA suggests that the asset is attempting to sustain its upward momentum. The trading volume is declining which is a worrying factor. Generally price movements require a spike in trading volume to be sustained particularly when breaking through important resistance levels.
Short-term upward pressure on XRP may be hampered by the decreasing volume which indicates a lack of buying pressure. The state of affairs now offers conflicting possibilities. It is evident that there is still some buying interest around these levels which makes the 26 EMA support a positive indicator.
Nevertheless the volume is low indicating that there may not be enough interest to push XRP to all-time highs. A sustained upward move could be supported by an increase in volume so traders should keep a watch on those levels.
Even though the legal drama is clearly a cloud in the sky, Toncoin’s price is rising again suggesting that a recovery may be possible. After a substantial decline Toncoin has stabilized technically. The 200-day moving average which has historically served as a solid support level was recently touched by the price. It’s possible that buyers are entering the market at these lower levels as indicated by the bounce from the 200-day MA.
The large red volume bars show that there was heavy selling prior to the recovery. But the green candle today and the volume increase that went along with it indicate that buyers are taking back control at least temporarily. The 50-day moving average or orange line is a significant resistance level that if broken could lead to further gains in the price. At this point the price is attempting to break above it.
Bitcoin found support at this critical level preventing a prolonged bearish trend and opening the door for further gains. The current configuration is especially intriguing because of where Bitcoin is located on the chart—a descending channel. BTC is currently heading toward the upper boundary of this channel which is located at roughly $68,000 after the lower boundary held steady.
A breakout toward $70,000 is becoming more and more likely if momentum keeps increasing. This optimistic scenario is supported by a number of technical indicators. First, an upward trend in the RSI indicates that buyers are gaining momentum. Furthermore there is a bullish crossover occurring here between the 50-day and 100-day exponential moving averages which frequently signals significant upward movements.
Although not particularly large, the trading volume has been steady suggesting that interest in Bitcoin is stable at these levels. This consistency is significant because it indicates that there is still room for more buying, as we get closer to the important resistance levels and that the market isn’t overextended.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
