The massive 65% rally in XRP launched the coin above the crucial resistance level of the 200-day moving average. Fortunately, XRP bulls were able to push the cryptocurrency above the resistance, allowing for a potential upward reversal.

What’s Next?

The breakout above the 200-day moving average is an important step toward a full reversal for XRP, as the cryptocurrency now has to gain a foothold above the previously mentioned resistance level before waiting for a cross between the 50- and 200-day moving averages.

Source: Tradingview

A cross would be the final indication of a reversal. Unfortunately, the two moving averages are far apart, implying that XRP would need to consolidate above the 200 EMA or gain additional bullish support to initiate an accelerated rally.

If the coin's price performance accelerates, the moving averages will begin to move closer to each other at a faster rate, increasing the likelihood of a bullish cross.

Unfortunately, asset trading volume has entered a downward trend, and we are witnessing a gradual fading and descending tendency during the weekend trading session. With the beginning of full trading on Monday, the net flow on XRP markets may recover, allowing the asset to enter an accelerated rally.

It is important to note that Ripple's success in court was the primary driver of XRP's massive growth over the last week, which means that all legal risks must be considered when receiving exposure to the asset.

Nobody is interested in XRP's success.

Unfortunately, other digital assets are not rushing to replicate XRP's performance last week. Bitcoin, for example, is steadily falling in the low volatility trading range. Such a trend is likely to continue unless the cryptocurrency market experiences a sudden recovery.

Luckily, the first cryptocurrency has reached a critical support level and is now consolidating around the year's low. A spike in accumulation by mid or high-tier whales and wallets would be a positive scenario here.

Consolidation has traditionally attracted traders and investors who want to accumulate an asset or reduce the dollar cost average of their positions in order to maximize their profits.

Apart from Bitcoin, Ethereum has received no support from investors in the last few days. The industry's second-largest cryptocurrency has lost more than 27% of its value.

As we have previously stated in U.Today market reviews, the main reason for Ethereum's poor price performance is the regulatory uncertainty that investors are experiencing following the successful implementation of the Merge update.

Despite the smooth transition to a PoS network, the SEC stated that Ethereum is subject to US jurisdiction, which means that ETH holders may be equated to security holders, causing numerous issues in holding, distributing, and trading the asset.

Posted 
Sep 25, 2022
 in 
Crypto News
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