Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

XRP $0.5 Entry Denied, Here's What's Next, Is Solana Comeback Getting Postponed? Ethereum (ETH) To Recapture $3,500

Published 06/17/2024, 08:30 AM
Updated 06/17/2024, 01:45 PM
© Reuters XRP $0.5 Entry Denied, Here\'s What\'s Next, Is Solana Comeback Getting Postponed? Ethereum (ETH) To Recapture $3,500
ETH/USD
-
XRP/USD
-

U.Today - XRP has failed to enter the $0.5 zone again, suggesting a massive resistance cluster around that level. Despite a substantial volume surge, the inability to break $0.5 might raise some concerns. However, the very act of XRP testing this threshold is a positive dynamic.

It has shown that the $0.5 barrier is a powerful one for XRP. Strong sell orders or a lack of buying momentum at this price point are the reasons why this resistance zone has held steady. Trading professionals frequently view these resistance clusters as important markers of market sentiment and possible turning points.

One noteworthy development is the recent rise in trading volume. Strong investor interest is often indicated by high volume which can be a bullish signal. The volume spike in this instance though did not result in a long-term price increase. This divergence implies that even though a lot of people are trading XRP there isn't enough buying pressure to break through the resistance at $0.5.

Even if the break fails, testing important price levels such as $0.5 is a good thing. It indicates that the market is actively testing these levels and sustained efforts have the potential to gradually erode resistance. As long as buying interest is sustained XRP may eventually break above the $0.5 zone after several tests.

Solana's unstable state

Solana was looking extremely rigid on the market. The fact that SOL held a $150 price threshold made it one of the most stable assets from the top. However, the price lost the $150 threshold and isn't making any comeback attempts yet.

Investors were encouraged by Solanas ability to sustain its price above $150 for a period of time. This barrier served as a level of technical and psychological support indicating a high level of market demand. But current market conditions have upset this equilibrium and SOL has fallen below this critical level. Investors are worried about the $150 support disappearing.

When a major support level is broken traders may reevaluate their positions which can result in increased selling pressure due to the psychological effects. Solanas underlying technology and ecosystem developments still have potential despite the recent setback but the market is currently feeling cautious.

Based on technical indicators SOL has not demonstrated any discernible signs of recovery. The price has not been able to rise above $150 again despite the recent trading volume.

Furthermore there is no obvious reversal pattern emerging suggesting that the asset is still in a bearish phase according to moving averages and other technical signals. Regaining and establishing the $150 level as a new support would be necessary for Solana to mount a comeback.

Ethereum was really close

Despite being inches away from $4,000, Ethereum, the second-biggest cryptocurrency, couldn't break through, raising concerns and almost killing the market momentum, tumbling down to $3,300. But what's in the future for Ethereum?

Strong opposition prevented Ethereum from breaking through the $4,000 barrier which resulted in a precipitous drop. Investor caution has been heightened by this decline as ETH has lost almost 17% from its recent highs.

Although Ethereum's resilience is well-known in the cryptocurrency community many traders lost confidence after the price fell to $3,300. Based on technical charts the 50-day moving average and the $3,300 mark represent areas of support for Ethereum. It is imperative that ETH stabilizes at this support level in order to gather steam for a subsequent rally.

ETH is neither overbought or oversold as indicated by the RSI which is currently circling 50 and indicating a neutral market sentiment. Many variables will determine whether Ethereum is able to bounce back and reclaim $3,500. First and foremost there needs to be an improvement in market sentiment which could be sparked by good news in general or advancements in the Ethereum ecosystem (which are unlikely for now).

This content was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.