Crypto

XRP Pivotal Indicators Are About To Cross: Crypto Market Review, October 11

Arman Shirinyan

Unfortunately, digital assets fail to break the extended downtrend

The bloodbath in the cryptocurrency market continues as most digital assets are trading around their lows. The positive exceptions we mentioned in our previous market review are reversing today.

XRP reverses

XRP has been one of the best performers in the cryptocurrency market over the past few weeks following Ripple’s success in court against the SEC. However, the positivity outside the market scope did not help XRP move into a strong uptrend for more than a few weeks.

Over the past two days, XRP has lost over 12% of its value and moved towards the next level of support at the 200-day moving average. Traditionally, traders don’t see this as a good bounce level and tend to ignore it in downtrends.

XRP Chart
Source: TradingView

However, the 50-day moving average is approaching the aforementioned level and the possibility of a bullish EMA crossover is getting closer to reality. In the event of a crossover between the two lines, XRP will officially enter a long-term uptrend.

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The last time the market saw a crossover of the aforementioned indicators on the chart was in August 2021. Back then, XRP showed the market a massive 70% price increase. Unfortunately, it reversed just as quickly as it had risen, and in less than six months, XRP was back in the downtrend.

Altcoins are in bad shape

Royalty on the crypto meme side was recently denied to Shiba Inu as it hit a major resistance level and quickly retreated towards the downtrend it has been in since November.

However, we could see a short-term reversal in the next few days as it forms a reversal candlestick pattern, known as a “hammer”. It usually appears around local lows and leads to a short-term reversal towards the next resistance level.

Unfortunately, chart patterns can only be taken into account in short term analysis as they do not necessarily suggest a long or even medium term change in investor sentiment.

State of Ethereum in the market

After an entire week of battling selling pressure and low trading volume, Ethereum has finally entered the expected consolidation trend and will now go until a spike in trading volume or inflow occurs on the market.

The second largest cryptocurrency started to lose value rapidly after the successful Merge update. Ether has fallen by more than 30% since the implementation of PoS. The main reason behind this could be excessive supply in the hands of speculators who were aiming for short-term profit.

Given the current state of the cryptocurrency market, ETH investors will not see recovery until institutional flows return to the digital asset market and demand for decentralized solutions becomes relevant again, which is the main source of revenue for the Ethereum network.

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