XRP experienced a significant and unexpected drop in price, falling by 20% in just two days. This is considered to be one of the most brutal price drops for XRP in years. Typically known for its low volatility, this plunge was particularly catastrophic and resulted in the breach of several important support levels. The decline was rapid, easily slicing through the anticipated support near the $0.58 mark and settling just above $0.48. Now, the focus turns to XRP’s next technical support levels, with the 200-day EMA standing out as a potential bounce point around $0.57. If XRP stabilizes and recovers above this line, it could restore some confidence back into the market. However, given the current state of the market, reclaiming its position above the resistance at $0.58 may seem unrealistic.
Moving on to Ethereum, its price is currently hovering just above $3,050 after a significant drop. This has led many to question if Ethereum is about to dip below the symbolic $3,000 mark. The 100-day EMA, situated around $3,050, is currently being tested as a support level. While this average has historically provided some buoyancy, its strength is not guaranteed. If Ethereum fails to maintain this level, a drop below $3,000 becomes increasingly likely. However, there is a possibility for a reversal. The start of a new week may bring about a shift in market dynamics as investors seek to capitalize on what they perceive as bargain prices. This buying pressure at local lows could potentially reverse the downtrend, at least temporarily. If Ethereum manages to hold above the $3,050 support, there is room for cautious optimism, with a potential rebound pushing prices towards the resistance level at $3,400. On the other hand, if Ethereum breaks below $3,000, the 200-day EMA at around $2,695 becomes the next significant level of support.
Bitcoin has surprised many with a substantial price drop, leading to concerns about the future of the bullish cycle. The drop to levels around $64,300 may indicate a trend reversal, signifying the end of the recent bull run. However, Bitcoin has not completely left its support levels. The 50-day moving average at $58,417 offers some hope as a potential bounce-back point. If Bitcoin can stabilize and hold above this moving average, a reversal remains a possibility. Additionally, further analysis suggests that the drop to $64,300 could potentially lead to a test of the next support level, which is the 100-day moving average around $60,000. Holding above this level could be crucial for maintaining a bullish outlook. If investor confidence remains steady and Bitcoin manages to hold above the 100-day MA, there is a chance for recovery and a potential push towards resistance levels, such as $67,500.