- The crypto market is experiencing a bearish trend, with Cardano (ADA) facing a potential drop to $0.55 and XRP struggling to maintain its $2 support level.
- Despite overall market downturns, XRP shows potential for a rebound if it holds its support, while Cardano’s technical indicators suggest a continued decline toward lower support levels
The cryptocurrency market kicked off on a high note after Donald Trump was re-elected as the 47th president of the U.S. due to his pro-crypto stance on the industry. What followed was a change in the Securities and Exchange Commission leadership where Paul Atkins was nominated for the permanent Chair position after Gary Gensler stepped down.
Things seem to be taking on a bearish trend, with Bitcoin falling below crucial support levels and flashing massive bearish signals. This downturn has had a ripple effect on altcoins, including Cardano (ADA) and Ripple (XRP). The two heavy hitters are struggling to maintain a bullish momentum.
Notably in the recent past the crypto market experienced a bloodbath in response to U.S. President Donald Trump’s first round of tariffs on imports from China, Canada, and Mexico. Altcoins including Ethereum, Cardano, and XRP’s prices nose dived resulting in billions being wiped from the crypto market cap.
Additionally, market uncertainties have also contributed to a crypto winter-like scenario where major tokens are witnessing significant sell-offs. Billions of dollars in outflows from spot ETFs have only added to the market’s woes. With Bitcoin struggling to maintain $80,000, ADA and XRP find themselves at a critical juncture.
Cardano’s Price Analysis
ADA is swapping hands with $0.6170 after an 8.05% decline in the past 24 hours. Notably, ADA’s market cap has also seen a 7.68%, stopping at $21.77B.
Cardano has witnessed a sharp decline, losing over 20% of its value from its consolidation phase around $0.77. Additionally, increased selling pressure has raised concerns about a potential decline to $0.55.
The technical indicators suggest a precarious situation for ADA. The token has broken down from a descending parallel channel, and while the breakdown has yet to be confirmed, the potential for a rebound remains. The Chaikin Money Flow (CMF) indicator remains above zero despite recent pullbacks, signaling that bulls are still exerting strength against the bears.
However, the Relative Strength Index (RSI) remains below the descending trend line, indicating that a strong rebound may only occur once ADA breaches this resistance. Until then, the likelihood of ADA testing the $0.523 support level remains high.
Ripple (XRP) Price Analysis
At the time of writing, XRP is swapping hands with $2.09 after a 5.74% decline in the past 24 hours. Additionally, the digital asset has recorded a 21.52% decline in the past week.
From a technical point of view, XRP is trading within a strong bullish range, increasing the probability of a rebound. The Accumulation/Distribution indicator suggests that the token is still in an accumulation phase, reinforcing the likelihood of an upward move.
Meanwhile, the RSI is testing the lower threshold, which typically signals an impending bullish reversal. As long as XRP maintains its pivotal support at $2, the outlook remains positive. However, if the price fails to hold, a dip to the lower support level at $1.6 could be on the horizon.