Market Factors Behind XRP’s Struggles
XRP’s struggle can be attributed to several factors, including a lack of use cases and poor performance in 2023. Yet, history has shown that XRP can swiftly transition from bearish to bullish, often catching people by surprise. To continue its growth, XRP must maintain its position above the 200-day EMA. If it decisively closes above this moving average, investor confidence could be stimulated, potentially leading to a challenge of the recent resistance at $0.63. A breakthrough and sustained hold above this level could indicate a trend reversal and open the way for targeting higher resistances in the $0.70 to $0.75 range.
After dipping to a support level around $88 on December 20, 2023, Solana has rebounded and formed a higher low near the $90 mark. Currently, Solana is testing a local trendline resistance at approximately $97.50. Beyond that, the next significant barrier is the $104 level, which previously acted as a local high around January 3, 2024. On the support side, the levels to watch are $88 and $85, with the latter being just below the 50-day moving average, providing a safety net for potential retracements.
Ethereum has experienced remarkable growth, breaking through key resistance levels. With increased buying pressure, Ethereum has the potential for two scenarios. In the first scenario, Ethereum could continue its aggressive push, aiming for the $3,000 target. Sustaining momentum, coupled with high trading volume, could potentially lead to testing the $3,000 level in the coming days. For this scenario to unfold, a consolidation above $2,600 is crucial, as it would establish a new support level and reinforce investor confidence. Alternatively, considering the volatile nature of crypto markets, a retracement could occur before Ethereum reaches $3,000. In this case, the asset may retest support around the $2,500 level, potentially acting as a springboard for a second wave towards and beyond $3,000.