The technical outlook in the cryptocurrency market is sending diverging signals for the three major assets. While XRP is trading at around $1.12 after its recent drop, all eyes are now on the psychologically important $1 level. Ethereum is showing initial signs of recovery after weeks of declines, while the recent technical breakdown has left Cardano’s upward momentum significantly weakened.
XRP nears $1 as ADA hits $0.16 and ETH steadies
Key level for XRP: $1 makes or breaks trend
XRP fell below the horizontal support zone it had maintained from March to May and lost further ground under the $1.30 support area. This price action completed a decisive breakdown from its multi-month descending triangle formation. The asset is also still trading under significant moving averages.
With the Relative Strength Index (RSI) dropping below 30, XRP has now entered oversold territory. While such levels can at times trigger short-lived rebounds, they alone do not signal an end to the downtrend. In periods of persistent selling pressure, prices can remain oversold for extended durations.
The critical short-term threshold for XRP is the $1 level—in the event this zone is held, a rebound toward $1.25 to $1.30 could materialize.
The analysis highlights that if XRP falls below $1, both technical and psychological factors could come into play. Round-number levels like $1 are closely monitored by investors, and a clear break below could trigger a wave of new stop-loss orders. Historically, the $0.90 to $1.00 band has attracted buyers, but just below this area, there is a lack of strong technical support.
Ethereum tries to steady after sharp decline
Ethereum is attempting to establish a firmer base after plunging from the $2,300 region down to $1,500. On the daily chart, ETH briefly dipped below $1,500, but swift buying activity pushed the price back up to around $1,600. This move is interpreted as the first sign of a possible higher low being formed in the market.
The appearance of a higher low in technical analysis is an early indication that bearish momentum could be weakening. Recently, Ethereum had consistently produced lower highs and lower lows. This latest bounce suggests selling dominance may be receding, but it does not confirm a full trend reversal.
Glossary: A higher low is when the price, during its next pullback, remains above the previous bottom. In technical analysis, this pattern points to weakening selling pressure and is often the first stage of a potential trend reversal.
Trading volume recently surged, with the latest sell-off seeing some of the highest volumes in months. This suggests panic selling and major liquidations near the local bottom. Nevertheless, Ethereum continues to trade below its 50, 100, and 200-day moving averages, which remain resistance areas in the $1,900 to $2,400 range.
For Ethereum, the most important near-term change is the halt in creating new lows, but this alone does not mean that the downtrend is over.
Cardano’s technical damage deepens further
Cardano (ADA) has broken decisively below the $0.20–$0.22 support zone that it maintained for months, marking an important breakdown in the daily chart. Following this move, ADA’s price has dropped as low as $0.16, levels last seen during the start of its previous major uptrend.
Technical indicators point to more pronounced damage in Cardano. The price remains well below its 50, 100, and 200-day moving averages, all of which continue to trend downward. The Relative Strength Index nearing 22 signals the asset is deep in oversold territory.
The latest sell-off, accompanied by high volume, suggests capitulation in the market. Such episodes often see weaker hands rapidly closing positions. However, there is no confirmed sign of a recovery yet; the first resistance stands around $0.21, while the 50- and 100-day averages pose further barriers at $0.24 to $0.25.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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