XRP Comeback Imminent? Crucial Signal, Ethereum (ETH) Price Hanging on for Dear Life, Stellar (XLM) in Comeback Mode
2025-01-29
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Though XRP has seen increased activity, as U.Today previously mentioned regarding XRP's 800 million transaction surge, the momentum has not yet translated into a convincing price breakout, so the question of whether a recovery will actually occur remains. XRP's price movement has been bouncing around the $3.18 mark and has had difficulty establishing a definite bullish trend. 
XRP recovered well from lower support levels, but its failure to break through important resistance areas indicates that buyers are not intervening as forcefully as they should. Additionally, the recent marketwide retracement has put pressure on XRP, preventing it from accelerating. Although activity levels are attempting to rebound, some investors were not satisfied with the level of intensity, according to on-chain data. XRPUSDT Chart by TradingView">
Whales, or institutional players, may not be fully stepping in just yet as the number of unique active accounts is not increasing at the same rate as the transaction volume, which is still high. Price movement may become erratic as a result until external catalysts or stronger accumulation increase demand.
XRP must recover at least $3.30-$3.50 range and maintain momentum above those levels in order to verify a genuine comeback. Otherwise, there is still a significant chance of another decline toward $2.80. It may indicate that XRP is getting ready for another surge if investors observe whether trading volume increases in tandem with price movement.
XRP is currently in a position where both upside and downside risks exist. Even though the recent spike in network activity is encouraging, it is insufficient to ensure a significant bullish breakout just yet.
Ethereum's last line of defense
The 200 EMA at $3,136 is Ethereum's last significant line of defense before a more serious breakdown, and it is clinging to this level, a critical support level. The wider upward trend may be seriously threatened if Ethereum breaks this support, which could pave the way for a more significant correction.
At $3,187, ETH is currently trying to maintain its position above this crucial level. ETH has been trapped in a declining trendline since its $4,000+ high earlier in this cycle, though, and the price action indicates growing selling pressure. As a short-term resistance level, the 50 EMA at $3,321 has made it difficult for the asset to regain its bearish structure for the time being.
Buyers seeking an entry at lower levels may be drawn to ETH if it is unable to hold $3,136. The next significant support is located at $2,800. A significant bearish indication would be a loss of $2,800, which could set off a chain reaction in the direction of $2,600 or less.
However, ETH might be able to attack the $3,445 resistance level, which corresponds to the 100 EMA, if it were to successfully recover from $3,136 and break out above $3,321. The picture presented by the volume analysis is also alarming. Strong bearish momentum is indicated by the recent sell-offs, which coincided with rising trading volume. A short-term bounce could be triggered by the RSI levels approaching oversold conditions, but it is unclear if buyers will have enough strength to buck the trend.
Ethereum is at a critical juncture. There is still hope for a recovery if bulls can hold $3,136, but if this support breaks, the next leg down might be severe.
Stellar shines
As it tries to regain its position above important moving averages, Stellar is displaying indications of a possible price recovery. After recovering from recent lows, XLM is currently testing the 50 EMA at $0.4187, a critical level that could decide whether the asset starts a new uptrend. Given the recent rebound, it appears that buyers are intervening to stop a more severe correction.
Further momentum could be generated if XLM is able to maintain above the 50 EMA with the next resistance levels at $0.44 and $0.47. Since these levels have already been rejected several times, bulls need to regain them. A consistent move above the 50 EMA would indicate that buyers are taking back control, and the 100 EMA at $0.36 has served as strong support during the recent decline.
A strong breakout will necessitate more buying pressure, though, as volume is still quite low. With the 200 EMA at $0.26 acting as a last line of defense, a pullback to $0.36 is likely if XLM is unable to maintain above $0.4144. The RSI is currently neutral, indicating that if momentum increases, there may still be a positive opportunity.
Stellar is currently in a recovery phase, and if important resistance levels are regained, a breakout could be imminent. To ascertain whether the asset is actually prepared to resume its upward trend, a decisive break through above the 50 EMA would be the key signal for it.