Here’s What Happens If This Resistance Breaks Ethereum (ETH) Finally Wakes Up US Dollar Index (DXY) Rise Is What’s Choking Bitcoin By U.Today
U.Today – Critical support for is present at the 26 EMA, a level that held ground for the asset. The short-term trajectory of the asset is likely to be determined by the ongoing battle for this price. A recovery could be possible if XRP manages to bounce there, which would mean a reversal of the current downtrend. However, there can be serious bearish consequences if the above is violated.
In line with XRP’s downtrend line, the 26 EMA functions as dynamic support. The reversal is all the more important because of this merger, which increases the pressure on assets. Increased trading volume, combined with a successful move above the 26 EMA, could push XRP back towards the $2.20 and $2.50 levels. Such a breakout could rekindle buying interest and likely give market participants more confidence.
Conversely, there could be serious consequences if XRP fails to overcome this hurdle. The asset could test lower supports if rejected at this level, likely confirming the current bearish trend. After $1.79 corresponding to the 100 EMA is $1.47 the first significant support level.
XRP’s market structure would be severely weakened by a drop below these levels which could push the price closer to $1.07, its next significant support zone. The relatively low trading volume that has accompanied XRP’s recent movements is of further concern.
wake up
Ethereum has formed a higher low which is a strong short-term bullish signal and is showing encouraging signs of recovery. This change implies that the market may be preparing for a recovery period that could reverse the recent downtrend. The lack of significant trading volume further supports the weakening of selling pressure highlighted by the formation of higher lows.
Lower volume may seem alarming at first, but it also means bearish momentum is waning. As a result, the bulls could regain control in the coming weeks, especially if new capital enters the market in January. The 50 EMA, a key indicator of short-term market trends, is one of the critical support levels above which ETH is currently holding. The asset could soon test the $3,544 resistance level if it continues to move higher.
Ethereum’s reputation would likely be restored if it breaks above this level opening the door to test the $3,800 range. But the general downward trend of the market remains a cause for concern. Ethereum’s full recovery is still hampered by broader market sentiment.
An increase in trading volume and increased buyer participation are necessary for ETH to continue its upward trajectory. Ethereum could see a turning point in January. Historically, the beginning of the year saw a resurgence of interest in the cryptocurrency market. ETH could pave the way for a stronger recovery if it manages to maintain its current trajectory and stay above $3000.
loses against the USD
Bitcoin (DXY) is still rallying at levels that heavily influenced momentum. Historically, Bitcoin and DXY have had an inverse relationship: Bitcoin finds it difficult to sustain gains when the dollar appreciates. As DXY becomes more popular, this dynamic repeats itself. Bitcoin has been pressured lower due to the recent recovery in the DXY which is currently trading at around 108.
Due to the steady monetary policy of the Federal Reserve and strong economic data, investor confidence in the US economy is reflected in the strengthening of the dollar. As a result, demand for dollar-denominated assets has increased, moving away from riskier options like Bitcoin.
As the dollar strengthens, Bitcoin’s latest rally has stalled. Bitcoin has lost momentum after attempting to break the psychological barrier of $100,000 and is currently trading below important resistance levels. Since outflows from the cryptocurrency market are often caused by a strong dollar, the rise in DXY makes it difficult for Bitcoin to sustain buying interest.
Bitcoin is considered a hedge against the devaluation of fiat currencies which explains this inverse relationship. Investors turn to Bitcoin as a store-of-value substitute when the dollar falls. However, a rising DXY is reducing this appeal and sending Bitcoin into a bear market. The future outlook for Bitcoin’s recovery depends on a possible reversal in the DXY trajectory. In the event that it stabilizes or falls, bitcoin could gain the upper hand and perhaps begin to rise again.
