Cardano and Solana Experience 7% and 5% Declines Respectively, XRP Could be Next If Support is Broken
XRP experienced a 2% drop in value on Friday, following in the footsteps of Cardano and Solana, both of which extended their declines. The charts for Cardano and Solana are now gearing up to approach critical technical levels that could play a pivotal role in determining their short-term direction.
Solana, in particular, plummeted by approximately 5%, remaining restricted below a steep downward trendline that has effectively shut down every recovery attempt. The most recent rebound faltered at the trendline and the 20-day EMA hovering around $140, solidifying this as a significant resistance area. A solid belt of Fibonacci resistance ranging between $141 and $153 continuously obstructs upside endeavors. Unless Solana manages to surge past this barrier, any rallies are poised to fizzle out rather than trigger sustainable momentum.
The RSI hovering around 41 indicates waning momentum without any signs of exhaustion, indicative of a gradual decline environment. Should the selling pressure persist, the price might revisit the earlier support levels at $122-$121, where buyers intervened during the previous downturn. However, if bulls manage to regain control, the subsequent price targets post breaking the trendline are positioned at $163 and $173.
On the other hand, Cardano witnessed a slide of nearly 7%, marking a test of a vital multi-month support level amidst a prolonged downtrend since October. Every effort to breach the trendline has proven futile, with each subsequent rebound losing steam, highlighting diminished demand. The price is currently probing a substantial support range at $0.38-$0.41, an area critical for previous consolidation phases. While buyers are responding to this level, the momentum remains lukewarm with fragile confidence. The foremost reference point on the chart is the 2-Year MA Multiplier, positioned significantly higher than the current price and displaying a flattened trajectory.
Unless Cardano convincingly transcends its trendline, sellers are anticipated to view every rebound as an opportunity to exit the market. Key levels to monitor on the upside include $0.43 and $0.48, with the subsequent zone situated close to $0.60. Conversely, if the support gives way, the downside risk expands towards $0.32, the last significant accumulation zone.
XRP is currently confined within an expansive descending triangle pattern, characterized by lower highs reflecting repeated rejection from a trendline originating in July. Each subsequent bounce has faded prematurely, underlining the persistent selling pressure at the structure’s apex. The most critical level on the chart is the rising support around $1.94, which buyers have defended several times, transforming it into a pivotal sentiment indicator. A breach below this level would signify a significant shift and eliminate one of the fundamental structural supports in the pattern.
Additionally, XRP continues to remain ensnared beneath the Supertrend at $2.41, presenting the initial hurdle that bulls need to surmount for any semblance of a bullish narrative to materialize. The Parabolic SAR has once again turned bearish, with signals appearing above the price and momentum tilting in favor of the sellers. As the compression approaches its final phase, culminating in the triangle reaching its apex in late December to early January, a breakout above $2.41 could pave the way for a surge towards $2.90, whereas a breakdown from the rising base could expose the levels between $1.75 and $1.60.
As Bitcoin registers a 4.5% dip and Ethereum a nearly 4% drop, solidifying a risk-off backdrop that constrains the follow-through on altcoin rebounds, broader sentiment remains lackluster for XRP and other cryptocurrencies.
