Crypto Market Review, October 11
Unfortunately, digital assets are unable to break long-term downtrends
The carnage in the cryptocurrency market continues as most digital assets hover around lows. The positive exceptions we mentioned in our previous market review are reversing today.
XRP reverses
XRP was one of the strongest performers in the cryptocurrency market in recent weeks following the success of Ripple in court against the SEC. However, the positivity outside the market arena did not help XRP move in a strong uptrend for more than a few weeks.
Over the past two days, XRP has lost more than 12% of its value and has moved towards the next support level at the 200-day moving average. Traditionally, traders do not consider it a proper bounce level and tend to ignore it in downtrends.
However, the 50-day moving average is approaching the aforementioned level, and the possibility of a bullish EMA crossover is getting closer to reality. In the event of a crossover between the two lines, XRP will officially enter a long-term uptrend.
Advertisements
The last time the market saw a cross of the aforementioned indicators on the chart was August 2021. Then XRP showed the market a massive price increase of 70%. Unfortunately, it reversed just as quickly as it rose, and in less than six months, XRP returned to the downtrend.
Altcoins are in bad shape
The reign of the meme side of crypto has recently been denied to the Shiba Inu, as it hit a key resistance level and quickly pulled back into the downtrend it has been moving under since November.
However, we may see a short-term reversal in the coming days as it forms a reversal candlestick pattern, known as a “hammer”. It usually appears around local bottoms and leads to a short-term reversal to the next resistance level.
Unfortunately, chart patterns can only be considered in the short-term analysis, as they do not necessarily suggest any long- or even medium-term change in investor sentiment.
Ethereum’s state of the market
After a full week of fighting the selling pressure and low trading volume, Ethereum has finally entered the expected consolidation trend and will now extend until an increase in trading volume or inflow occurs in the market.
The second largest cryptocurrency quickly started losing its value after the successful Merge update. Ether has fallen by more than 30% since the implementation of PoS. The main reason behind it could be excessive supply in the hands of speculators who aimed for short-term profit.
Considering the current state of the cryptocurrency market, ETH investors will not see the recovery until institutional inflows return to the digital asset market and the demand for decentralized solutions becomes relevant again, which is the main source of income for the Ethereum network.
