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The market is slowly going down or entering the consolidation channel.This could be the first sign of a long-term reversal
The explosive rally that started at the beginning of the month is coming to a logical conclusion as the majority of digital assets have reversed from local highs. However, there are exceptions, such as XRP, which remains in an uptrend.
What’s coming to market next week?
A stronger and deeper correction is likely in popular assets such as Ethereum, BNB and even Bitcoin once the bullish trend in the market cools down. Sentiment-based indicators show that investors are no longer panicking, but the underlying factors that have boosted the cryptocurrency market have not emerged in recent times.
Open interest on most crypto derivatives trading platforms has risen, which can be seen as a sign of a return of liquidity and depth. Unfortunately, most of the re-emerging volume in the market is likely to involve bears trying to get an advantage over bullish retail investors.
Most cryptocurrencies, including Bitcoin, are still trading in an uptrend and have not completely lost their footing in the market. However, most of these assets will enter local consolidation channels and could become the basis for a downward reversal that will only exacerbate the long-term condition of the market.
Shiba Inu hasty reversal
Shiba Inu’s unexpected come-from-behind rally and breakout celebration didn’t last long. On Wednesday the 18th, SHIB exploded above his 200-day moving average, leaving most of the bears who had amassed short his positions at the aforementioned levels.
However, the breakout that took SHIB to a 75-day high weakened rapidly after the whales provided notable selling pressure, breaking the premature support level ladder that was unprepared for an influx of selling. I was.
Unfortunately, the Shiba Inu has yet to find the strength to bounce back strongly and remains at the same price level as three days ago. After the whale unloads the huge amount of SHIB tokens it has accumulated, the bull is no longer keen to support the rise of Meme tokens.
XRP is rock solid
Despite the Genesis bankruptcy announcement and market reversal, XRP does not appear to have lost the momentum it gained earlier, as it has been trending upwards locally since the beginning of January.
At the time of writing, XRP is trading above the 50-day moving average, which can be seen as a reversal zone for the asset. The Relative Strength Index is also far from the “overbought” zone for XRP, meaning the asset has plenty of room to grow in the coming weeks or months.
Unfortunately, not much is happening around the XRP ecosystem, despite the many statements made about the fundamental importance of the network.
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