U.Today – The so-called “Santa Rally” of 2019, usually a time of optimism and price increases during the holiday season, is beginning to show signs of potential danger. After a brief drop below the 50 EMA at $95,000, Bitcoin has managed to recover and is currently trading near $97,000. There is growing concern that this rally may eventually form a lower high, a classic sign of a continuing downtrend.
The bearish pattern will be validated by a lower high, which may lead to a sharp decline in the price. Bitcoin may find it difficult to maintain the positive momentum observed in previous months if it is unable to rise above its previous highs of around $104,000. Bitcoin may move towards important support areas if it is unable to regain higher levels; The 100 EMA at around $84,500 is a crucial level to watch.
Rapid changes in sentiment and momentum for Bitcoin, which has seen increasing selling pressure in recent weeks, pose a threat. Despite the asset's attempts to rebound, volume indicators point to a mixed picture. Bitcoin's recent rebound may not last if this pattern continues, and investors hoping for further gains may fall into the trap.
This is consistent with the general uncertainty surrounding Bitcoin's future. If the market does not make a clear move above $100,000, it may be more vulnerable to a sharper correction, with potential targets of $84,500 and even $76,000.
Although Bitcoin's Santa Rally may seem promising at first glance, traders and investors are finding it increasingly risky. Given the potential for a lower high, this rally is critical, and with the market moving through the holidays, caution is encouraged. To revive bullish confidence, there must be a clear breakout above the resistance level; Otherwise, the downtrend may gain more strength.
He stays under pressure
Since the downtrend is still very much in place, XRP remains under pressure. Over the past few weeks, the asset has witnessed a steady decline, creating a downward channel that has seen it approach important support levels. In order to determine whether it will stabilize or continue to decline, XRP is currently testing the Exponential Moving Average (26 EMA).
The ongoing downward trend draws attention to the unpredictability of XRP market conditions. When combined with low trading volumes, a falling channel indicates that investors are hesitant to aggressively return to the market. If the overall market condition deteriorates, this lack of conviction makes XRP more vulnerable to selling pressure.
XRP has managed to maintain a relatively stable position near the 26 EMA despite the gloomy short-term outlook. Sustained stability above this level could provide some comfort to the asset, as it has served as historical support during volatile times. However, a break below this level would likely accelerate the decline and bring XRP closer to the $1.80 to $1.50 range, which is home to the 50 EMA and other historical support levels.
The overall structure of the asset should also trigger caution among market participants. Concerns are being raised about XRP's medium-term prospects due to its failure to make a strong recovery or break through important resistance levels around $2.50. Reversing the downtrend and regaining investor confidence requires a successful breakout above this resistance.
At the moment, XRP’s position is critical and weak. The broader downtrend presents serious risks, although the asset has shown resilience near the 26 EMA. A break above the 1.80 level may indicate a more significant correction, so traders and investors should watch it carefully. However, if stability above the 26 EMA is maintained, a slow recovery may be possible; However, significant buying pressure will be needed to change the trend.
Is DOGE related?
The fact that trading volume remains low, a trend that has continued over the past few weeks, suggests that its momentum is flagging. As a reflection of the current uncertainty surrounding the asset, the market's lack of notable activity is both worrying and interesting. A lack of demand is often associated with low trading volume from a bearish point of view, which may intensify downward pressure.
DOGE had difficulty breaking important resistance levels, remaining at $0.34, without making any progress. The overall downtrend that began after the rally to $0.48 continued as a result of this recession. Due to lower trading activity, suggesting that market participants are reluctant to commit, DOGE is vulnerable to additional declines. However, there are some positive aspects to silent volume.
In many cases, a decrease in trading volume during a downtrend can signal the end of selling pressure. This could mean that downward momentum is waning, which could lead to a reversal, or at least a short bounce. At around $0.28, where the 100 EMA is located, Dogecoin may find support if the bulls can intervene at this point. A recovery from this level could pave the way for a higher level – perhaps as high as $0.37.
