October was pretty good for cryptocurrencies as they made some massive gains, but this month has turned out to be the opposite of last month, with digital coins continuing to retreat. In the last several days, buyers were trying to put up a fight and reverse the price higher, but today the decline has resumed again, picking up pace further and sending the market lower. Ripple coin and Cardano were already showing bearish signs before, missing out on the crypto rally last month, so they have turned even more bearish today, although there is still hope for buyers so let’s have a look at XRP and ADA.
Ripple Daily Chart Analysis – XRP Stalls at the 200 SMA
Will the 200 SMA hold as support one last time?
Ripple has been missing out during the bullish periods in the crypto market, weighed down by the lawsuit with the SEC (Securities and Exchange Commission) in the US. As a result, the price action here has been quite boring since September, without any direction at all. We heard Ripple’s officials say that the case is going in the right direction, but that is not helping XRP much, as the sentiment remains quite bearish. Even the news that Palau is partnering with Ripple to bring a national cryptocurrency did not help the price either.
We did see an attempt to turn bullish early this month, but eventually, November turned into a bearish month for cryptocurrencies. Ripple was trading above $1 but today’s decline took it lower and now XRP/USD stands right at the 200 SMA (purple) on the daily chart. This moving average has been acting as support before so there is a decent chance that we see a bounce from here. A break of this moving average will open the door for $0.50, but let’s see how today’s candlestick will close.
Cardano Daily Chart Analysis – XRP Stalls at the 200 SMA
Cardano has been even more bearish than Ripple. The Alonzo hard form which brings smart contracts to the blockchain has been going well, but ADA/USD has been declining since early September nonetheless. Founder Charles Hoskinson is trying to rally investors behind Cardano, urging them to focus on the fundamentals, which in my opinion are pretty good for this crypto, but that hasn’t helped Cardano much.
eToro decided to delist Cardano, which looks like a suspicious move, since Cardano still remains number 6 in terms of market capitalization. That sent ADA/USD below the 200 daily SMA (purple) which has been acting as support for this cryptocurrency. Although, right now Cardano has stalled right at the previous resistance around $1.50, so there is a chance that we might see a bullish reversal here as well. Although, the market sentiment remains negative and the sentiment for Cardano has been even worse so this is a tough fight from buyers. The next support level comes at $1 for ADA.
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