Major XRP Crisis, Arbitrum (ARB) Faces Steep Correction, Hope Emerges on Cardano (ADA)
The XRP market is experiencing a tumultuous period as crucial technical indicators suggest a potential deepening crisis. A thorough examination of the XRP price chart reveals a significant breakdown below the 200-day EMA, signaling a bearish trend that could lead to further price decline.
This breakdown is accompanied by a looming bearish EMA cross, where the shorter-term moving average is poised to cross below the longer-term average. Such a crossover would confirm the dominance of bearish momentum, increasing the risk of continued decline for XRP.
Adding to the concerning technical setup is the declining volume during the downtrend. While descending volume can indicate a lack of conviction in the downtrend, it can also signify that a substantial price drop has not attracted new buying interest, potentially prolonging the bear market.
In terms of specific price levels, XRP currently faces a significant resistance level at around $0.66, which must be surpassed to change the current bearish narrative. On the downside, the support level to watch is approximately $0.42. A breach of this support level could severely undermine market confidence and lead to intensified selling pressure.
For a potential reversal, bulls would need to push the price back above the 200-day EMA and initiate a bullish EMA cross. This would require a significant increase in buying volume, possibly triggered by positive developments in Ripple’s legal challenges or adoption news.
Arbitrum, the native token of the leading Layer-2 scaling solution for Ethereum, is experiencing a substantial price correction in the cryptocurrency market. ARB has undergone a notable retracement from its recent highs, indicating a bearish reversal pattern that could extend further. This decline in value could reflect the current sentiment towards Ethereum and its associated L2 solutions, as there is renewed interest in ecosystems like Solana, known for its high throughput and lower transaction costs.
Analyzing ARB’s chart reveals a critical local support level around $1 that the asset must maintain to prevent further slides. On the upside, the resistance to monitor is approximately $1.8, which has previously hindered upward movements and may continue to act as a barrier to recovery.
To envision a reversal scenario in the near future, ARB would need to reclaim and consolidate above the $1.05 support. This could be driven by increased user adoption or technological milestones within the Arbitrum ecosystem that reignite interest and confidence.
On a more positive note, Cardano has shown signs of hope on the chart. On January 19, a “candle of hope” emerged as ADA witnessed a significant reversal from the 100-day moving average. This reversal candle not only provides temporary relief but also suggests a potential shift in market sentiment. While the midterm trend has been bearish, the decreasing volume accompanying the downward price action indicates weakening selling pressure.
Examining specific levels, ADA has found strong support around $0.4126, a level that bulls have historically defended and could serve as a launching pad for a potential recovery. On the other hand, the asset faces immediate resistance at $0.5591, which has acted as a stubborn barrier to upward movements. For ADA to regain bullish momentum, this resistance level needs to be convincingly broken.
For a bullish reversal scenario to materialize, ADA must build on the momentum of the “candle of hope” and surpass the resistance level, ideally with increasing volume to validate the move. A sustained breakthrough could attract sidelined investors back into the market, further strengthening the recovery.
Furthermore, if the broader market conditions stabilize and positive developments continue within the Cardano network, such as advancements in scalability or new partnerships, these could act as catalysts for reversing the current downtrend.