Markets
Is XRP in the ‘crab market’? Solana (SOL) Reaches Major Resistance Level Before $200, Ethereum (ETH) Really Needs This Price Level
Arman Shirinyan
As the week wraps up, we may finally see some action on Monday
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It seems that XRP it is not making any attempt to break through the trend currently shown in the market. The asset has barely moved since the start of the month and the most recent attempt to break through to $0.54 only pushed the asset below $0.50. Cryptocurrency is on the rise again, but will most likely end up in a “crab market.”
The term “crab market” refers to a state in which the price of an asset moves sideways without significant upward or downward trends. XRP price action is a textbook example. Despite occasional spikes, the overall movement is horizontal. This lack of direction can be frustrating.
Looking at the graph, XRP has struggled to break above the resistance levels defined by the 50-day EMA and 100-day EMA, which are hovering around $0.54 and $0.55, respectively. These moving averages acted as strong barriers, preventing any substantial upward movement.
Additionally, volume is another indicator that suggests a lack of strong buying interest. In recent weeks, trading volume has been relatively low, indicating that traders are reluctant to engage significantly in either direction. This low volume usually accompanies a “crab market,” reinforcing the idea that XRP may remain in this pattern for a while.
For XRP to break out of this stagnation, it would need a significant catalyst, either from a fundamental development in the cryptocurrency market or a strong technical breakout above resistance levels.
Solana’s main resistance
Solana has finally reached a crucial resistance level, which is perhaps the last threshold it will have to overcome to get closer to the much desired $200 mark. However, it is not yet clear whether Solana will succeed.
Solana is currently testing resistance around $175, a level that has previously acted as a strong barrier. This resistance is strengthened by the 50-day EMA, which is converging around the same price. Recent price action suggests that the bulls are trying to push the price higher, but the real test will be to break above this resistance and sustain the momentum.
There has been a notable increase in trading volume in recent days, indicating growing interest among traders. The increase in volume suggests there is significant purchasing power to support the recent price increase. For Solana to break above the $175 resistance and target $200, it will need strong and consistent volumes.
As for the RSI, it is approaching the overbought territory. While this indicates strong bullish momentum, it also suggests that the asset may be subject to a short-term correction or consolidation before attempting another upward move. If the RSI manages to stay above the midline after a potential pullback, it would signal sustained bullish momentum.
Historically, Solana it faced significant resistance around the $175-$180 range. Breaking this level would be a major milestone and could open the way to $200. However, failure to break above could lead to a retracement towards support levels around $155 or even $143.
Ethereum needs it
Ether has no longer been the strongest cryptocurrency on the market since the beginning of the year. It struggled to reach its all-time high (ATH), lagged Bitcoin’s performance, and the overall ecosystem did not thrive during the bull phase. market. With the price of ETH having reached a critical level, we should all hope that the bulls can push it a little further.
Ethereum is currently facing a significant resistance level around $3,150, characterized by the 50-day EMA and the historical zone of increasing selling pressure. The last time Ethereum reached the aforementioned area, it quickly moved back towards $2,900.
Volume is a key indicator to keep an eye on. There has been a notable increase in trading volume in recent days, which is a positive sign. Higher volume indicates stronger buying interest and market participation. For ETH to break above the $3,150 resistance, high and sustained volume is required.
The RSI is currently hovering around the midline, suggesting this ET it is neither overbought nor oversold. This neutral RSI offers room for further upward moves if buying pressure increases. However, if the RSI approaches overbought territory without a significant price increase, it could signal a potential pullback or consolidation.
Support levels to watch include the 50-day EMA around $3,050 and psychological support at $3,000. If ETH fails to break the $3,150 resistance, it could return to these support levels. On the other hand, a successful breakout could see ETH target higher resistance levels around $3,300 and potentially $3,500.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.