The pressure witnessed on the market might become a springboard for a proper recovery.
After our most recent review covered the poor state of the market, things turned around. Bitcoin might be gearing up for another surge, XRP is regaining solid market positions, and Ethereum is entering a hiatus after being pushed down for days.
Is Ethereum dormant?
The second-largest cryptocurrency in the world, Ethereum, is facing an odd and worrisome development: a disastrous decline in volatility. With ETH firmly settled around the $4,295 mark after weeks of quiet activity, price swings have all but stopped. Such a lull is not considered good for a market that depends on momentum.
Because of its high trading volume and steady market participation, Ethereum has a history of experiencing abrupt price swings, both upward and downward. ETH’s daily candles are getting smaller, volumes have dramatically decreased in comparison to the July spike, and the asset seems to be stuck in a small range, which contradicts the current state of play. Stated differently, Ethereum is heading toward 0 volatility.
This lack of movement can be interpreted in two possible ways. Optimists might contend that Ethereum is merely consolidating and building strength in anticipation of its next breakout. The 50-day EMA at $4,124 provides strong short-term support, while the 100-day EMA at $3,620 acts as a secondary cushion. Should volatility return, ETH could soon move back into the $4,600 to $4,800 range.
However, at the moment, the bearish interpretation is more credible. A collapse in volatility usually indicates waning investor interest, a reduction in speculative flows, and the possibility of a steep correction if sellers intervene. In the absence of fresh demand, ETH runs the risk of falling below $4,124, which could pave the way for $3,620 and possibly the 200-day EMA at $3,201.
In summary, the market should be wary of Ethereum’s volatility collapse. The danger of fatigue is present underneath the apparent stability of the lack of movement. If ETH cannot attract new investors soon, the second-biggest cryptocurrency in the world may be about to plunge further.
Is Bitcoin gearing up for a surge?
After weeks of correction and sideways trading, Bitcoin might be subtly getting ready for its next leg upward. BTC is currently trading at about $111,583, where it is comfortably situated above the 200-day EMA at $104,991, and just above the 100-day EMA at $110,770, which forms a tightening wedge pattern. Even though the most recent rally attempt has not yet gained significant traction, technical indicators point to the possibility of a new uptrend developing.
At 47 points, the Relative Strength Index (RSI), which is still below the neutral 50 mark, provides one of the strongest signals. In the past, these levels have frequently indicated that Bitcoin is oversold in relation to its longer-term trend. This suggests that even though trading volume is not as enthusiastic, there is still plenty of opportunity for buyers to intervene and raise prices.
From a resistance perspective, the immediate barrier is at the $112,362 level. A break above it would allow the 50-day EMA, which is currently at $114,878, to be reached. A stronger move above $116,000 would invalidate the recent downtrend and likely confirm a new bullish phase.
To preserve its bullish potential, Bitcoin needs to defend $110,770 on the downside. A decline below this region would reveal the 200-day EMA, which is close to $105,000, and would represent a more definitive test of long-term trend support.
Although the market has been reserved, Bitcoin’s chart patterns and technical signals generally suggest that the asset is getting ready for a possible uptrend. Bullish circumstances are produced by the confluence of oversold RSI readings and consolidation near strong support. Bitcoin may move from its current stagnant phase into a new upward cycle. If volume begins to increase in the coming weeks, it may retest $114,000 and higher.
XRP’s recovery: Is the bear run over?
Following weeks of bearish pressure and sideways trading, XRP is beginning to show signs of recovery. The asset is now attempting to break through resistance levels that might pave the way for a broader recovery after rebounding from the $2.77 support. It is currently trading at approximately $2.91.
The first obstacle is the 26-day EMA, which XRP is currently testing. The most obvious indication yet that bulls are taking back control after a quiet August would be a confirmed close above this moving average. When that obstacle is overcome, the 50-day EMA at $3.07 will be the next target. This resistance has already absorbed selling pressure during the consolidation phase, making it structurally weaker than it was in prior months. Accordingly, the road to a long-term recovery appears much more attainable than it did at the beginning of the summer.
There is cautious optimism, which is bolstered by momentum indicators. Indicating fresh buying interest, the RSI has risen back toward 50, separating from oversold levels. Although it is still far below July’s highs, trading volumes have marginally increased from the previous week, indicating that market participation is starting to rebound.
If XRP can successfully break the 50 EMA, upward targets will swiftly expand, with the $3.30 zone emerging as the next resistance and the $3.50 region not far behind. The recovery story would be weakened if $2.77 were not held, and XRP might be pulled back toward the 200 EMA at $2.53.
At the moment, the market is giving off subtle but significant cues. Although there are still some early indications, a full recovery for XRP has not yet been established. If the 26 EMA gives way and momentum persists, a break above the 50 EMA might signal the beginning of XRP’s next bullish phase.
