Bitcoin’s breakout is questioned due to declining volume, placing it at risk of reversal; XRP is in a squeeze phase, signaling potential volatility; Ethereum recovers above $2,000, though still faces resistance, indicating cautious optimism in the market.

Bitcoin is currently at a critical juncture where further decline is a possibility. Despite a recent breakout above a local ascending trendline, the trading volume has not validated this upward momentum, raising concerns of a potential fake-out. The situation is exacerbated by Bitcoin trading below its 100 and 200 EMAs, which currently reside at approximately $90,000, highlighting ongoing technical challenges. The psychological threshold of $80,000 could be revisited should Bitcoin fail to solidify support between $85,000 and $86,000.

As Bitcoin lacks firm momentum, traders are advised to monitor price action closely around the 100 EMA, as insufficient volume could undermine the recent breakout. Should this occur, a retest of lower support levels may be imminent. In contrast, XRP finds itself in a classic squeeze situation, caught between its 50-day and 100-day exponential moving averages. This tighter price range typically precedes significant movement, with consolidation just above $2.30, which serves as a short-term support base.

To realize a potential upward trajectory towards the vital resistance at $2.70, XRP must overcome current volume declines, signaling trader uncertainty. A failure to break above the 100 EMA could trigger a downward retest of the 50 EMA support. The upcoming weeks are critical for XRP to establish direction as it remains within a squeeze zone, where a breakout could signal bullish momentum.

On the other hand, Ethereum has shown resilience by bouncing back above the significant $2,000 threshold after enduring prolonged bearish pressure. Currently priced close to $2,017, Ethereum is regaining its footing following a sharp correction seen in previous weeks. This rebound can be attributed to increased buying interest, driven by a retraction of short positions.

However, despite this recovery, Ethereum remains below critical exponential moving averages, and the trend remains cautiously bearish until it surpasses the 50 EMA at about $2,400. Increased volume and the RSI indicator’s recovery from oversold levels suggest potential accumulation. Yet, traders are urged to approach with caution, as true upward movement requires volume expansion and the breaking of resistance levels.

In conclusion, Bitcoin is facing a precarious situation, where the lack of validation in breakout volume raises concerns of potential declines. XRP’s upcoming movements hinge on its ability to escape a squeeze zone, while Ethereum shows early signs of recovery, yet remains under significant resistance. Traders should remain vigilant and analyze market conditions carefully before making informed decisions.

Original Source: u.today

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