The crypto industry has displayed a neutral trading month as the total market valuation has experienced a variation of less than $10 Billion, indicating a cool-off in the buying and selling pressure within the crypto space.
Further, the leader of altcoins, Ethereum, added less than $50 to its value during the month. On the other hand, other altcoins have concluded the month with mixed sentiments, as primary tokens have recorded significant losses during this time.
Cardano (ADA) Price Analysis:
Since the market crash back in 2022, the ADA coin price traded between $0.2266 and $0.4523 till December 2023, highlighting a long bearish run of over 17 months. However, the altcoin broke out of the resistance level during the December rally.
This gave a massive sign of relief to the long-holders of the coin. Following this, Cardano’s ADA token continues to display a neutral trend by trading in a closed range between $0.4523 and $0.6874 for over two months.
Looking at the short term, the ADA token has recorded a loss of over 10% during the past month and is trading close to its important support level. Further, the coin has successfully formed a symmetric triangle pattern and is on the verge of breaking it within this month, making it crucial.
The technical indicators display negative sentiments as both Cross EMA 50/200-day and MACD show a high possibility of a bearish convergence in the coming time. Positively, the 200-day EMA supports the price action, indicating a mixed sentiment in the future price action of the coin.
If the market ignites a bullish run by increasing whale activities, the ADA price may gain enough momentum to test its resistance level of $0.6874 in the coming weeks. On the contrary, if the bulls fail to maintain momentum, the bears will gain control, and the price will prepare to test its essential support level of $0.4523.
Ripple (XRP) Price Analysis:
Following the victory of Ripple Labs over the Securities And Exchange Commission (SEC) in the case, which was running for over two years, the XRP token displayed significant price volatility in the chart. The token recorded a massive jump of over 70% within the first few hours, after which it has been in a triangle pattern.
The XRP price continues its struggle to hold price above the $0.5 mark as the token faces repeated rejections at its important resistance level. Further, the constant decline in the price is raising concerns over the future of this crypto token in the coming time.
Ripple’s XRP token has recorded the highest loss among the top 10 tokens, with a valuation correction of approximately 20%. Moreover, the XRP price chart has formed a triangle pattern and is on the verge of breaking soon. Looking at the market sentiment, the price is predicted to break the pattern as the coin continues to trade under a strong bearish influence.
The technical indicator, MACD, displays a rising red histogram and a bearish convergence in the averages, highlighting increased selling pressure in the market. Further, the Cross EMA 50-day acts as a resistance to the price chart, indicating a bear power in the crypto space.
If the XRP price experiences a bullish trend reversal, it will attempt to break out of the triangle pattern. Further, if Ripple’s XRP token breaks out of the pattern, it will prepare to test its next major resistance level at $0.64. Conversely, if the token experiences a breakdown, then the market will brace itself to experience a new low soon.
Overall, it is impossible for both the altcoins to make a run to test for $1 this month as both XRP and ADA will have to record a 2X jump to achieve the target, a total of over $40 Billion.