Crypto Market Review, September 25

XRP’s massive 65% rally launched the coin above the all-important resistance level of the 200-day moving average. Fortunately, XRP bulls were able to push the cryptocurrency above resistance, allowing for a potential upside reversal.

What will be next?

The breakout above the 200-day moving average is an important step towards a full reversal for XRP as the cryptocurrency must now gain a foothold above the aforementioned resistance level and then wait for a cross between the 50- and 200-day moving averages.

A cross would be the final signal for a reversal. Unfortunately, the two moving averages are far apart, meaning XRP will need to consolidate above the 200 EMA or gain additional support from bulls that will initiate an accelerated rally.

If the coin’s price performance accelerates, the moving averages will begin to move toward each other at a faster pace, making the possibility of a bullish crossover closer to reality.

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Unfortunately, the trading volume of the assets entered a downtrend, and we see a gradual fading and declining trend during the weekend trading session. With the start of full trading on Monday, the net flow in XRP markets may recover, which should help the asset into an accelerated rally.

It’s important to note that Ripple’s success in court was the main fuel for XRP’s massive growth we saw in the past week, meaning it’s important to consider all legal risks when receiving exposure to the asset.

No one follows XRP’s success

Unfortunately, other digital assets are in no rush to show performance similar to what we saw in XRP last week. Bitcoin, for example, continuously moves down into the low volatility trading range. Such a trend will most likely continue unless the cryptocurrency market faces a sudden recovery.

Fortunately, the first cryptocurrency has reached an important support level and is now consolidating around the low of the year. The positive scenario here would be an increase in the accumulation of whales and wallets at a medium or high level.

Traditionally, consolidation attracts traders and investors willing to accumulate an asset or reduce the dollar cost averaging of their positions to maximize profits.

Apart from Bitcoin, Ethereum too has not found any kind of support from investors in recent days. The second largest cryptocurrency in the industry has lost more than 27% of its value.

As we have mentioned in previous U.Today market reviews, the main reason behind the problematic price performance of Ethereum is the regulatory uncertainty that investors are facing after the successful implementation of the Merge update.

Despite the smooth transition to a PoS network, the SEC stated that Ethereum falls under the US jurisdiction, which means that ETH holders could potentially be equated with security holders, causing many problems in holding, distributing and trading the asset .