Markets are slowly turning lower or entering consolidation channels, which could be the first sign of a longer-term reversal.
The explosive rally that originated at the beginning of the month is nearing its logical conclusion, as most digital assets have reversed from their local highs. However, there are some exceptions like XRP that remain in the uptrend.
What is coming to the market next week?
With market optimism cooling, we could become witnesses to a much stronger and deeper correction in popular assets like Ethereum, BNB or even Bitcoin. While sentiment-based indicators show investors are no longer panicking, no fundamental factors driving the cryptocurrency market have emerged recently.
Open interest on most cryptocurrency derivatives trading platforms has been on the rise, which can be taken as an indication of recovering liquidity and depth. Unfortunately, most of the recurring volume in the market could be tied to bears trying to gain an advantage over bullish retail investors.
Most cryptocurrencies, including Bitcoin, are still trading in an uptrend and have not completely lost their foothold in the market yet. However, most of those assets have entered local consolidation channels, which may become the basis for a downward reversal that will only aggravate the state of the market in the long run.
The quick reversal of Shiba Inu
the celebration for Shiba Inu The unexpected reversal rally and breakout did not last long. On Wednesday the 18th, SHIB broke out of the 200-day moving average explosively, leaving behind most of the bears who accumulated short positions at the aforementioned level.
However, the breakout that put SHIB at its 75-day high quickly faded after the whales provided notable selling pressure, ripping down the premature ladder of support levels that was not ripe for an influx of selling.
Unfortunately, Shiba Inu has not yet found any power to come back strong and has remained at the same price level as three days ago. After the whales dump a massive amount of accumulated SHIB tokens, the bulls are no longer enthusiastic about supporting the meme token on its rise, so it is unlikely that they will see volatile upward moves in the foreseeable future.
XRP remains unshakable
Despite the Genesis bankruptcy announcement and market reversal, XRP does not appear to lose the momentum it gained earlier as it has been in the local uptrend since early January.
At press time, XRP is trading above the 50-day moving average, which can be considered a reversal zone for the asset. The Relative Strength Index is also too far out of the “overbought” zone for XRP, which probably means that the asset has enough room to grow in the coming weeks or even months.
Unfortunately, not much has happened in the XRP ecosystem despite numerous statements about the fundamental importance of the network.