After falling below the upward trend line, which shows a deterioration in short-term momentum, XRP is currently at a key point. The XRP is currently trading at around $2.86, surpassing the key support trend line that once led the rally.
The indicators suggest that buyers may be losing ground, but if momentum returns, recovery is still possible. The Relative Strength Index (RSI), currently just below 40, is one of the best indicators. Typically, this level means that your assets are approaching territory of sales where sales pressures can begin to wear out. A similar RSI measurement is preceded by previous XRP cycles before any significant rebound.
Given the market is at a technical intersection, RSI indicates that a relief rally may be possible in future sessions. This mixed image is further exacerbated by a consistent decline in trading volume. With fewer convictions behind the sale, relatively small purchase pressures could reverse momentum and bring it back upwards as shown by reduced participation.
To regain the ascending structure and pursue additional recovery, XRP may need to regain the $2.95-$3.00 zone. But the danger still exists. Now, the crucial battlefield of 50 days, the 50-day EMA, is just below current prices. A breakdown below this level could speed up losses in the direction of a 100-day EMA at $2.74. This area could serve as the final line of defense before a more serious fix.
All things considered, the XRP chart shows weakness, but does not surrender. If overselling RSI readings indicate that downside momentum could quickly stall, the Bulls may have an opportunity to recover lost ground soon. Once the volume increases and stays above the moving average, it is still possible for XRP to recover.
Bitcoin dispersal
In addition to showing noticeable bearish RSI divergence, the biggest cryptocurrency, below the historically significant support level of 50 days, has recently been destroyed. This pattern shows that even though prices hit an all-time high earlier this month, the underlying momentum is gradually eroded.
This is a dangerous situation that frequently occurs before long-term corrections. The divergence is particularly concerning as it reflects the market conditions observed in June 2022, when similar setups preceded deep and long-term sales. Price action initially seemed bullish, but the RSI shows that in both cases the price is higher and the buyer is losing power. The final collapse led to a series of liquidation, and the market conditions suggest that history could now repeat itself.
A clear drop in trading volume reinforces the bearish debate. Typically, a decrease in volume trends during retracements indicates that there is not enough demand for current price levels. Given that Bitcoin is currently trading its 100-day EMA for $110,600, it is likely to drop even further without strong buyer support. A 200-day EMA of around $103,500 could be the next important line of defense if this level gives way.
The RSI is currently approaching the neutral 40 zone, which is another warning sign. If it falls below 40, bearish domination will be strengthened, which could speed up the downward trend. The market is delicately balanced in light of this, which could further reduce further sales pressure.
Ethereum is not empty
As Ethereum shows resilience again, there is speculation that a drive heading towards $5,000 in September could occur. ETH has had to undergo the necessary corrections after a rapid increase over several weeks, cooling down around $4,800 from the peak. Importantly, the fix occurs under control, with ETH recovering from the 26-day EMA remaining above the level traders are currently targeting as short-term support. The fix is often seen as a way to cool the market, and Ethereum appears to have done that well.
While recent pullbacks have de-specified and excessive leveraged, the volume pattern shows that sellers are declining as buyers gradually regain control. Another leg technical room was created by normalization of the RSI after entering the territory previously acquired. The self-directed modifications in the ETH setup are what makes it so interesting. Rather than a panic-driven sale, Ethereum's decline was in a more consolidated phase than a sudden crash across the market. This type of behavior, which is usually a sign of bullishness, indicates that the assets are stable before continuing on the current course.
The chances of Ethereum retesting $4,800 increase as it keeps scaffolding at over $4,200 and buyers continue to step in. If that resistance zone breaks, you will be able to run towards the psychologically important $5,000 mark. Ethereum is the focus of new investors' interest as Bitcoin consolidates and altcoin momentum increases.
Although there are no guarantees in the cryptocurrency space, the chart shows that ETH has established a stronger foundation for future growth. Ethereum could eventually make its long-awaited move to exceed $5,000 in September.
