Cardano’s rejection at a key technical level has raised concerns for the digital asset’s future. The 26-day exponential moving average acted as a significant resistance, indicating a bearish sentiment for ADA. The rejection at this level has halted its upward momentum and suggests a stronger resistance than anticipated. ADA’s immediate support is now at $0.4763, but a more robust support level at $0.4234 is likely to be tested.
Meanwhile, the surge in the U.S. Dollar Index (DXY) has caused worries in the cryptocurrency market. The DXY’s bullish momentum and breach of a critical resistance level indicate a strong upward trend. This rise in the dollar’s strength leads to decreased risk appetite among investors, causing funds to flow out of cryptocurrencies and into the perceived safety of the dollar.
On the other hand, XRP’s chart is showing early signs of a possible reversal. The resilience at the $0.5387 support level and resistance at $0.5730 suggest a shift in market sentiment from bearish to bullish. An increase in the liquidation of short positions also indicates that bears may be losing their grip. If XRP breaks through the resistance level and holds above it, a series of short liquidations could fuel upward momentum, potentially leading to a stronger reversal trend with a test of the next resistance at $0.60.