U.Today – The price of has risen 20% to $1,166, continuing its notable rally. Based on Elliott wave theory, the current move is consistent with the fundamental third wave of the bullish pattern, which is often considered the strongest and most significant stage of an uptrend. This increase puts XRP in a position to reach a significant price in the coming days. After breaking above $1.00, to start the first wave, XRP went through a consolidation phase around $1.30 to form the second wave.
With strong momentum and increasing volume, XRP now appears to be in its third wave. In the past, this wave has tended to push prices higher than previous moves, attracting more buyers and boosting optimism. The next resistance level, $1.80, is one of the important levels to watch while XRP momentum remains strong. If this level is broken, XRP may reach the $2.00 mark, an important psychological barrier and an all-time high.
If XRP continues down this path, $2-$20 could also be considered a long-term target. Immediate resistance is at $1.80. Above this, a breakout validates the strength of the third wave. An important psychological and historical barrier that could lead to further market activity is the $2.00 level.
$2.20: If the rally gains more strength, this could be the upper target. One of the downside risks is a drop below $1.30, which would test the wave structure and suggest a possible decline in the trend. Any corrective action should be mitigated by the strong support that is still present around $1.30.
Nasty market
As it hits a lower high on the daily chart, Bitcoin indicates that it may be about to reverse. For bullish traders, this is concerning because lower highs often indicate waning momentum and can suggest a more significant correction. Bitcoin is currently facing resistance that could limit its near-term upside potential despite its recent strong performance.
When the high falls, it means that buyers are losing control and cannot push the price to new highs. As sellers gain confidence and trading volumes begin to decline, this pattern usually appears before a longer consolidation or larger move to the downside. If Bitcoin fails to break above the most recent high around $97,000, the current rally could be tested.
Right now, Bitcoin is trading at around $97,500, just below the psychological threshold of $100,000. BTC must overcome the immediate resistance level of $98,000 to rekindle the bullish momentum. The $88,000 and $78,000 support levels are crucial on the downside. The lower high pattern would be validated by a break below $88,000, which would likely trigger a deeper pullback towards the $78,000 area, which corresponds to the 50 EMA.
The fact that the Relative Strength Index (RSI) is still near overbought levels suggests that Bitcoin might need some cool-down time before making another big move. There is also a possibility of short-term weakness because volume appears to be declining compared to the previous level of the rally.
Pepe’s high potential
Pepe is approaching a critical point as its price hovers around the 21-day EMA, a crucial support level that has continuously contributed to the continuation of its recent uptrend. The current short-term bearish trend is reflected in the cryptocurrency consolidating under a descending trend line.
This set of circumstances indicates that a breakup is likely imminent one way or another. PEPE price recently recovered from the 21 EMA, indicating how crucial it is as a support zone. It could open the door for a bullish reversal, if the price can hold above this level. On the other hand, a break below the 21 EMA could lead to a more severe correction; The next support levels are at $0.00001746 and $0.00001350.
The steady decline in trading volume is among the most telling indicators on the chart. This decrease in activity usually occurs before notable price movements because it indicates a consolidation phase during which traders wait for clear direction. PEPE is likely to experience increased volatility and break out of its current range once volume increases.
PEPE is under short-term bearish pressure, as indicated by the descending trend line on the chart. The price has had a difficult time breaking above this trend line, which has limited recent bullish movement attempts. PEPE needs to maintain its position above the 21 EMA and confirm a reversal by breaking the trend line with high volume in order to see a bullish breakout.
This article was originally published on U.Today.