Both $XRP and $ADA have hit key levels in their respective price increases. Could this mean rejections, or could this lead to the next leg higher?
Resistance convergences make $XRP breakout problematic
Source: TradingView
The short-term chart for $XRP shows plenty of convergence at the current price. The price rose as much as 7.6% from the local bottom at $2.69. However, it has met the convergence of the $2.87 horizontal resistance, the descending trendline, and the 0.618 Fibonacci extension level for this latest move. At the same time, the Stochastic RSI indicators have topped out and are shaping up to begin a descent.
All in all, it does rather look like this could be the swing high for this particular move.
$XRP downtrend can still be broken
Source: TradingView
The daily chart would tend to agree with an $XRP local top at this level. To add to previous resistances, the 100-day simple moving average (SMA) is also lending itself to the case for the bears.
At the bottom of the chart, the Stochastic RSI indicators are angled upwards – a sole factor for bullish movement. That said, even if there is a rejection from here, a descent to the $2.70 or $2.80 support levels would potentially put in higher lows. This downtrend can still be broken.
$ADA W pattern could take price to $0.84
Source: TradingView
The short-term time frame for the $ADA price shows that first a big M pattern played out all the way to the downside, as shown by the red arrow. Now, a smaller W pattern is in the process of playing out. If the price comes back to confirm the neckline and then heads back up, the measured move could be to the extent of the green arrow at $0.84.
Multi-year trendline is a big barrier for $ADA bulls
Source: TradingView
The daily time frame for $ADA is continuing to look more bearish than bullish. Even though the descending trendline has been in force since August 2021, it still shows no sign of breaking. To add more misery to the bulls, a bigger M pattern is in the process of either being confirmed or of being annulled. This all depends on whether the critical support at $0.80 holds or not. If it doesn’t hold, a descent to the support at $0.63 is the measured move. If the bulls can negate the pattern, they still have to push up through the $0.85 horizontal resistance, and the multi-year descending trendline. Taking a long position might be best only if and when the descending trendline is definitively broken.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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