XRP Paints Out 'Death Cross,' But There's a Catch

u.today 11 August 2023 17:04, UTC

Analytics

$XRP has exhibited a concerning pattern on its charts. The asset has formed what is known in the trading community as a "Death Cross." A death cross typically indicates a possible substantial sell-off. It occurs when a shorter-term moving average crosses below a long-term moving average, signaling a potential bearish turn for the asset.

However, there is a catch that investors need to be aware of. The "Death Cross" for $XRP has been observed on a shorter term, specifically the four-hour timeframe. While a four-hour chart is not the longest-term time frame, it provides enough insight into the asset's current midterm sentiment. It reveals a prevailing bearish tendency among investors which, if prolonged, might impact the asset's long-term trajectory.

Moreover, another troubling sign for $XRP enthusiasts is the descending volume. A declining volume during such a phase can be a strong bearish indicator. In trading, volume often validates the movement of the price, and if the volume is descending during bearish indicators, it signifies a lack of buying interest. This scenario can further exacerbate the potential drop in price.

For a long-term perspective, these combined factors paint a not-so-rosy picture for $XRP. If the bearish sentiment stemming from the "Death Cross" on the four-hour chart persists and volume continues to decrease, $XRP might face significant downward pressure. This could lead the asset to nosedive.

Shiba Inu to face large resistance

With a recent surge in its price trajectory, $SHIB is actively pushing toward the significant $0.00001 mark. This positive momentum comes on the heels of the token breaking through a vital threshold, the 200 Exponential Moving Average (EMA). This technical achievement, seen as a bullish indicator by many, signals that $SHIB might be entering a new phase of growth.

There are a few factors driving this upward movement. The launch of Shibarium, Shiba Inu's Layer 2 blockchain solution, has injected newfound enthusiasm among its backers. By providing a more scalable and efficient infrastructure, Shibarium is expected to usher in a range of decentralized applications (dApps) and other projects under the $SHIB banner.

Moreover, the Shiba Inu community, lovingly referred to as the "Shiba army," continues to expand. Their unwavering support and active campaigning across various social media platforms give $SHIB a sort of viral marketing that most projects can only dream of.

While the $0.00001 mark might seem minuscule in absolute terms, for $SHIB and its holders, it represents a significant psychological barrier. Breaking past it would not only be a testament to the token's resilience but also a signal of its potential to achieve even higher milestones.

Aptos' recovery failed

Aptos ($APT), a relatively new name in the crypto community, has recently been the subject of investor focus. As it tries to forge its way upward, $APT has unfortunately hit a stumbling block. Despite several attempts, the digital asset is currently struggling to breach the crucial 50 Exponential Moving Average (EMA) resistance level, a key metric that traders and analysts often look to for determining an asset's potential trend direction.

Aug. 9 saw an unusual surge in trading volume for Aptos, with a staggering 63% spike. Such volume surges typically play a pivotal role in pushing an asset past resistance levels, but in the case of $APT, this was not enough. The asset could not capitalize on this momentum to clear the 50 EMA mark, a sign that perhaps larger market forces or inherent valuation concerns are at play.

The inability of $APT to use this volume surge to its advantage by breaking through the 50 EMA is a cause for concern among its holders. With the current volume not sufficient to provide the necessary push, it places Aptos in a precarious position. For any asset, consistently failing to break key resistance levels can dampen investor sentiment and potentially lead to a bearish phase.