ADA showing some resilience on market following break of destructive trend
Cardano has recently shattered its RSI divergence, propelling it to a current trading price of approximately $0.256 as of Sept. 1, 2023. While this uptick might seem like a promising sign, the market’s lukewarm response suggests that this rally might not have the legs for a long-term bullish run.
For some time now, Cardano has been grappling with a stagnant price. The recent RSI divergence break appeared to breathe new life into the asset, but the market’s tepid reaction tells a different story. The current trading price of $0.256 indicates that investors are still on the fence about Cardano’s future prospects. Moreover, the absence of a significant uptick in trading volume casts doubt on the sustainability of this recent price surge.
RSI divergence is typically a robust bullish indicator. However, in the case of Cardano, it seems to be more of a fleeting moment than a lasting trend. The market’s lackluster response is evident in the trading volume, which has not seen a noteworthy increase. This half-hearted market reaction puts the sustainability of Cardano’s recent price gains into question.
XRP remains stagnant
XRP has been in the spotlight for various reasons, but its recent price action has caught the attention of traders and analysts alike. Despite attempts to reverse its bearish trend, XRP has failed to break through a crucial resistance level, the 200-day Exponential Moving Average (EMA). As of Sept. 1, 2023, the asset is priced at $0.5049, indicating a lack of bullish momentum.
For XRP, the inability to surpass the 200 EMA has confirmed a failed reversal attempt, leaving investors and traders cautious about its near-term prospects.
Adding to the bearish sentiment is the looming possibility of a “death cross” on XRP’s chart. A death cross occurs when a short-term moving average crosses below a long-term moving average, usually the 50-day and 200-day EMAs, respectively. This technical pattern is often considered a bearish indicator and could signify further downside for XRP.
Based on the latest data, XRP is currently trading at $0.5049. The asset has been struggling to gain upward momentum, and its failure to break the 200 EMA resistance level has cemented its bearish outlook. While the asset has shown some resilience in the past, current market conditions do not favor a bullish reversal.
Shiba Inu fails to deliver
In a previous market review, we discussed the symmetrical triangle pattern forming on Shiba Inu’s (SHIB) price chart. However, recent developments have invalidated this pattern, leaving investors and traders puzzled about the meme coin’s next move.
As of Sept. 1, 2023, Shiba Inu is trading at $0.00000799, according to the latest data. The asset has failed to maintain its position within the symmetrical triangle, falling below the pattern’s lower trendline. What’s even more intriguing is that the expected volatility that usually accompanies the breakout or breakdown of such a pattern has not materialized. This suggests that the symmetrical triangle was invalidated and did not play out in either direction.
Symmetrical triangles are generally considered to be continuation patterns, meaning they usually result in a price movement in the same direction as the trend that preceded them. The lack of a decisive move following the breakdown of the triangle could indicate a lack of conviction among traders and investors.
Adding to the complexity is the fact that the overall crypto market has been showing mixed signals. While some assets are rallying, others are struggling to find direction. In such a scenario, Shiba Inu’s inability to capitalize on its pattern could be a sign of underlying weakness or simply an indication that traders are waiting for more definitive signals before committing.
It is worth noting that the absence of increased volatility post-pattern invalidation is somewhat unusual. Typically, a breakdown or breakout from a symmetrical triangle is accompanied by a spike in trading volume and volatility, which did not occur in Shiba Inu’s case.