The cryptocurrency market enters the new week with a notable correction, as Bitcoin (
$BTC ) sees a 1.33% drop, falling just above the $98,000 mark. This decline has triggered a broader market pullback, affecting major altcoins following a month of substantial gains.
Among the hardest-hit assets are
$XRP and Cardano (
$ADA ), which have experienced declines of over 7% and 8% respectively. This correction comes after significant price surges, with XRP gaining more than 300% and ADA increasing by over 150% in the past 30 days.
XRP (XRP)
XRP has been consolidating within a falling wedge pattern, with the price retreating from a recent high of $2.90. Earlier today, XRP tested a minor support level at $2.33, briefly rebounding to its current price of $2.38.
This support level at $2.33 is crucial for XRP's short-term outlook. If it manages to hold above this level, the price may move toward the next resistance at $2.50. However, if XRP fails to maintain this support, it could fall back to the $2.25 mark, which serves as a more significant support level within the wedge pattern.
Cardano (ADA)
Cardano (ADA) has experienced a sharper decline, breaking below its key support trendline at $1.20, a level that had been pivotal during its recent rally. As a result, ADA has dropped to $1.11, which now acts as a minor support zone.
If ADA manages to stabilize at this level, it could see a recovery toward the $1.20 resistance. However, if this support fails to hold, the price could continue to slide toward $1.05 or potentially $0.97 if bearish sentiment persists.
Outlook and Expectations
Both XRP and ADA are currently at critical junctures in their respective corrections. While the long-term bullish outlook for both tokens remains intact, their short-term movements will heavily depend on their ability to maintain key support levels.
For XRP, the $2.33 support and for ADA, the $1.11 level, are critical to monitor. A failure to hold these levels could lead to further declines. On the other hand, a rebound from these support levels could signal the beginning of a recovery, allowing both assets to regain momentum.
As the market adjusts after a strong month of gains, investors should brace for continued volatility and potential further corrections.
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