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With the emergence of a new downtrend, the popular cryptocurrency is facing extreme upward pressure and signals the start of a new downtrend.
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Cardano and XRP prices face a similar position where they could bounce back and break out of a new bearish trend.
A bearish cloud is hovering over the cryptocurrency space as the token faces a massive bearish heat, increasing the chances of it visiting lower support points. The sudden attempt by Bitcoin and Ethereum to break above $53,000 and $3,000 respectively triggered a powerful bearish attack on the market. Traders are expected to become more uncertain from now on, which may force them to extract profits from every small jump. As a result, popular altcoins like Cardano and XRP are facing significant bearish action following the rejection.
Will the market experience a delay in recovering its strong uptrend, or is this just a ploy to trap the decline and crush short sellers all at once?
Cardano (ADA) Price Analysis
- ADA price is expected to undergo a similar price movement after being rejected from the key resistance zone and is expected to reciprocate the previous price movement.
- Previously, when ADA conducted a price test of a resistance zone, RSI surged past the upper limit, resulting in a rejection. However, RSI has been showing bearish divergence much earlier, so a bounce could be imminent.
- Therefore, it is expected that the price will continue to decline for some time and then head towards the lower support line of the ascending triangle.
- However, a rebound is expected to begin once the price reaches the average level of the Bollinger Bands, which could push it above $0.61 and pave the way for it to reach $0.65.
Ripple (XRP) Price Analysis
- The chart above shows the tremendous bearish pressure the XRP price has experienced over the past few months.
- Despite a strong start to the month, the price failed to break the key resistance level of 0.382 FIB at $0.58. This is because bears limited the move at $0.578 for several days.
- Due to changes in market dynamics, DMI is close to flashing a bearish signal. This is because both lines are closer to validating a bearish crossover with the ADX heading south.
- This may prevent the bulls from showing signs of strength, but after some consolidation, a bounce above $0.58 appears imminent, and a rise above $0.6 could prove to outgrow the bearish impact.