Javier Hernandez On Wednesday, XRP experienced a sharp decline of over 9% as traders sought to secure their profits following a recent surge to a ten-week high. This drop occurred amidst a prevailing bearish market sentiment, which was influenced by the actions taken by the U.S. Securities and Exchange Commission (SEC) last week. Additionally, Cardano also faced a downturn today.
XRP
Formerly known as Ripple, XRP saw a significant drop of over 9% during the day’s trading session as traders aimed to protect their recent gains.
On Tuesday, XRP/USD reached a peak of $0.5614, marking its highest level in ten weeks. However, the sell-off today pushed the token to a low of $0.5009.
The decline occurred after the bulls failed to sustain yesterday’s breakthrough of a crucial resistance level at $0.5490.
XRP/USD – Daily Chart
Examining the chart, the shift in sentiment became evident as the relative strength index (RSI) declined to a new support level at 52.00.
At the time of writing, the index is slightly above this level at 52.11, with a potential target of 58.00 for the bulls.
If this level is reached, it is likely that XRP will once again be trading above $0.5500.
Cardano (ADA)
On Wednesday, Cardano (ADA) also experienced a notable decline, remaining near a key support level.
After reaching a high of $0.2895 on Tuesday, ADA/USD dropped to an intraday low of $0.2699 today.
Consequently, Cardano remained close to its long-term price floor at $0.2700, which was breached over the weekend.
ADA/USD – Daily Chart
The drop on Saturday brought ADA to its lowest point since January, but the decline was short-lived, as bulls quickly entered the market to buy the dip.
Despite the recent rebound, the RSI continues to remain below 30.00, indicating ongoing bearish pressure.
Bulls may target the $0.3000 level in the short term; however, there is likely to be significant volatility that could impede reaching this point.
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Do you anticipate a price recovery for Cardano this week? Share your thoughts in the comments.
Table Of Contents
Frequently Asked Questions (FAQs) about cryptocurrency market
Q: What caused the decline in XRP and Cardano prices?
A: The decline in XRP and Cardano prices was primarily driven by traders securing their profits following recent highs. Additionally, the bearish market sentiment influenced by the actions taken by the U.S. Securities and Exchange Commission (SEC) further contributed to the price decline.
Q: What were the recent highs reached by XRP and Cardano?
A: XRP reached a ten-week high at $0.5614, while Cardano reached a high of $0.2895.
Q: What were the price levels following the decline?
A: After the decline, XRP dropped to a low of $0.5009, while Cardano fell to an intraday low of $0.2699.
Q: What resistance level did XRP fail to maintain?
A: XRP was unable to sustain the breakout of the key resistance level at $0.5490.
Q: What support level did Cardano remain close to?
A: Cardano remained near its long-term price floor at $0.2700, which was broken over the weekend.
Q: What is the significance of the relative strength index (RSI) in the analysis?
A: The RSI is a technical indicator used to assess the strength and momentum of a cryptocurrency’s price movements. In this analysis, the RSI levels provide insights into the market sentiment and potential future price targets for XRP and Cardano.
Q: Will there be a price recovery for Cardano this week?
A: The possibility of a price recovery for Cardano this week remains uncertain due to the ongoing bearish pressure and significant market volatility.
More about cryptocurrency market
- U.S. Securities and Exchange Commission (SEC): Official website of the U.S. Securities and Exchange Commission, providing information on regulatory actions and news.
- Technical Analysis: Investopedia’s guide to technical analysis, a methodology used to analyze price patterns and make predictions in financial markets.
- Relative Strength Index (RSI): Learn more about the Relative Strength Index (RSI) and its significance in analyzing market trends and price momentum.
- Cryptocurrency Market Analysis: CoinDesk’s markets section provides real-time data, charts, and analysis of various cryptocurrencies, including XRP and Cardano.
- Trading Strategies: Explore different trading strategies to gain insights into profit-taking and managing market volatility.
3 comments
hey, XRP & cardano takin’ a dive, traders lockin’ in profits from highs. XRP down 9%, cardano near support level. SEC actions & bearish feels affectin’ the market. Volatility’s a wild ride, huh? #cryptocurrencywoes
why XRP and cardano prices drop? profit takin’ after highs & SEC’s bearish vibes playin’ a part. XRP couldn’t hold resistance @ $0.5490. Cardano nearin’ support @ $0.2700. RSI tells the story. Will cardano recover? uncertain times ahead! #cryptoanalysis
XRP & cardano on a rollercoaster! XRP hits 10-week high, but then plunges 9%. Bulls lose grip at $0.5490. Cardano bounces back, but RSI stays low. Bulls eyein’ $0.3000, but volatility makes it tricky. Will cardano see a comeback? Only time will tell! #cryptomarket