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XRP has recently experienced a sharp decline, breaking through key price levels that were considered strong support.
When looking at the price charts, we see that XRP struggled to move past the $0.65 mark, which has been a tough barrier for it in the past. The price fell below the $0.57 support line, showing that there is a strong bearish mood on the market.
Currently, $0.55 is seen as an important support level. If this level does not hold, the price could drop further to $0.50, a point where more buyers might step in to stabilize the price.
On the other hand, if the $0.55 level holds firm, there is a chance for the price to start recovering. But for a real upward trend to take shape, XRP needs to move above the $0.57 level and stay there.
The fall in XRP's price can also be linked to the aggravating correction on the market, which has been somewhat expected.
Golden opportunity for USD
DXY, which measures the dollar's value against a group of major currencies, has shown a "golden cross" pattern. This happens when the 50-day moving average crosses above the 200-day moving average, hinting at a long-term increase in the dollar's value.
While this may be good news for the dollar, it could be bad for commodities and cryptocurrencies because a stronger dollar often leads to lower prices for these assets in dollar terms.
The DXY's chart shows the 50-day moving average rising and crossing over the 200-day moving average, suggesting that more people might start investing in dollar-based assets and cash.
The DXY's important levels to watch include resistance around the 104-point mark and support at the 103-point mark. Breaking past resistance could mean a continued uptrend for the dollar, while dropping below support might indicate the rally is losing steam, which could give other markets some relief.
Ethereum in poor state
Ethereum is nearing an important support level, but there is a major problem: the correction is looking worse than expected as the second-biggest cryptocurrency is nearing a price level that we have not seen for the last two weeks.
Looking at its price chart, Ethereum has dropped from its higher price points and is now focusing on a crucial support area around the $3,000 mark. This price level is important because it has previously served as a key point for buyers and sellers.
Whether Ethereum can stay above this $3,000 support is key. If it does, it might indicate potential for the price to go back up, as buyers could be encouraged by this historically significant level. However, if Ethereum falls below this level, it could quickly drop to the next support area around $2,800, indicating that the upward momentum might be weakening.
The next resistance level to watch is at about $3,500, a point Ethereum has had trouble rising above lately. If it can break through this resistance, it might continue to climb, possibly reaching the $3,700 mark. Yet, any upward move is expected to face challenges at various points along the way.
The market's current view, based on Ethereum's price action, is in an extremely poor state. Ethereum's movement often affects the whole crypto market because of its major role on the altcoin market. Significant price movement by Ethereum could either boost confidence across the crypto space or lower it, impacting other cryptocurrencies and blockchain projects. As for now, most of the DeFi traction has moved to Solana blockchain, where meme coins are seeing far more demand than more substantial assets.