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XRP Enters Reversal Zone, $0.00002 Shiba Inu (SHIB) Level Is Dangerous, Will Ethereum (ETH) Survive?

Published 06/15/2024, 08:30 AM
Updated 06/15/2024, 01:45 PM
© Reuters XRP Enters Reversal Zone, $0.00002 Shiba Inu (SHIB) Level Is Dangerous, Will Ethereum (ETH) Survive?

U.Today - Shiba Inu retraced not long ago and been slowly gaining traction on the cryptocurrency market but retraced not long ago. The tendencies we are seeing right now are most likely tied to the global de-risk mode on the cryptocurrency market, and it might push investors even further.

The pullback was caused by broader market's risk-averse sentiment. This de-risking mode is a common reaction of investors seeking to minimize high risks. Consequently, SHIB has struggled to maintain its upward momentum.

SHIB is testing critical support levels, currently. Significant attention on global economic factors and regulatory developments influenced asset's price movements

The 200-day EMA is often seen as a long-term indicator of an asset's healthб If SHIB can hold above this support level, it may provide a foundation for a potential reversal. Maintaining this level could signal strength and stability to the market. But be ready if SHIB breaks below this level, it could face further declines, possibly triggering additional selling pressure.

XRP hits important zone

XRP has finally reached a level that could be called a reversal zone. The reversal potential for the asset at approximately $0.47 is way higher than that at levels we saw before, apart from the $0.5 psychological threshold. This is how things may turn out.

XRP has been in a place where there has been some heavy selling at hand recently a few weeks ago. However, the present price at which XRP trades at $0.47 is a very important level. This area catches the eye for the reason that it has supported the price action in past and therefore could be a level where the asset starts to move in the opposite direction.

This was due to current support and previous resistance that seems to hold at the $0.50 level, which is accepted as a psychological level. The recent move towards this level signals to show that XRP may be in a reverse mode because, more often, it tends to bounce back at around these levels. However, the prevailing market conditions are not providing a clear cut case for a smooth reversal.

Of course, from a technical view, this recent price action has XRP sitting at a very critical support level. If the asset can remain above $0.47, it could catch buyers seeking to ride the possible bounce, and if it cannot hold, the price will find lower levels for support.

Ethereum's trouble

Ethereum's climb toward $4,000 was much harder than it used to be in 2021. The second-biggest cryptocurrency on the market is showing unhealthy tendencies, especially after plummeting toward $3,500. The most likely outcome we are going to see is recovery from the 50 EMA, but risks are still there.

Over the past few months, Ethereum has faced increased volatility and selling pressure. This has been a stark contrast to the bullish momentum seen in previous years. The dip toward $3,500 has raised concerns among investors, as it signals potential weaknesses in Ethereum's market support. The 50-day EMA, currently around $3,332, is being closely watched as a potential support level that could halt further declines and facilitate a recovery.

The 50-day EMA is a crucial technical indicator that often acts as a support level in uptrending markets. If Ethereum can hold above this level, it may provide a foundation for a rebound. However, broader market sentiment remains cautious, with many investors wary of further drops. This cautious sentiment is reflected in the trading volumes, which have shown significant fluctuations, indicating uncertainty and lack of strong conviction among traders.

Several factors are contributing to Ethereum's current struggle. Market-wide de-risking, regulatory uncertainties and macroeconomic conditions have all played a role in pushing enthusiasm down, despite the approval of the ETF.

This content was originally published on U.Today

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