XRP: Critical Pattern Emerging, Ethereum (ETH) Not Giving Up, Major Solana (SOL) Support Here
2024-12-12
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A higher low, a crucial reversal signal that might pave the way for fresh bullish momentum, is being hinted at by the price action of XRP. When XRP was unable to break above the $2.80 resistance level, a critical area that signaled the end of its recent rally, it entered correction mode on Dec. 3.
A distinct higher low pattern may restore market optimism, but the current pullback is trying traders' patience. As can be seen from the chart, XRP has been consolidating within a descending channel that formed following November's sharp rally. The price has dropped to $2.20-$2.30 during this correction phase, which is a crucial range that may serve as support. XRPUSDT Chart by TradingView">
The asset has further support from the 26 EMA, which is positioned around $2.10 and in line with the possible higher low formation. When the price sets a new low that is higher than the previous low, it indicates that selling pressure is waning and is known as a higher low. This could indicate that the $2.10-$2.20 range for XRP could be a good starting point for a subsequent leg up.
Yet the declining volume during this period of consolidation indicates that traders are still being cautious. The $2.50-$2.80 resistance zone is likely to be retested if XRP is able to hold the $2.10 support level and exit the descending channel.
A move toward $3.00 or higher might be possible if there is a successful breakout above $2.80, which would rekindle bullish momentum. The next significant support level is $1.90 and $2.10, and if the levels are not maintained, additional losses may result. If this level is broken, the higher low pattern and extended correction may be deemed invalid.
Ethereum stays resilient
Despite the general cryptocurrency correction over the past week Ethereum has demonstrated market resilience. Following its recent decline from its peak of $4,100 ETH has discovered a possible support area close to the 26 EMA, which is located at about $3,550. This level has historically served as a pivotal point for trend reversals and given the state of the market, it is still relevant.
After an impressive rally earlier in November, Ethereum experienced selling pressure at the $4,100 level, which is where the chart shows its pullback. Since the correction, ETH has returned to the 26 EMA, a level that traders frequently use to evaluate medium-term trends. Lower trading volume during the retracement suggests that the selling pressure may be lessening, which could pave the way to a future recovery. 
The relative strength indicator (RSI), which has cooled from overbought levels and indicates that ETH is no longer overextended, is another indicator that points to a potential reversal.
The asset has more space for upward movement after this reset should bullish momentum reappear. It might make sense for Ethereum to recover toward $3,800 if it can maintain the $3,550 support and gain strength from this point. It would be possible to retest $4,100, the most recent high, and perhaps set up for new highs in the upcoming weeks if the $3,800 level could be successfully reclaimed. 
The $3,200-$3,300 range is the next crucial support zone, and if the 26 EMA support is not maintained, Ethereum may decline even more. Any bullish scenarios would probably be postponed as a result, and attention would be diverted to protected lower levels.
Solana's first major support
With the asset touching the 50 EMA, which is frequently seen as significant support for possible reversals, Solana has reached a critical juncture in its price performance. Given that Solana is currently trading at about $220, bulls should pay close attention to this level because holding it could signal the start of a reversal that could result in a significant price recovery in the upcoming weeks.
The graph indicates a wider market correction as Solana retreats from its prior highs around $260. Even with the drop, SOL's drop to the 50 EMA offers optimism for a recovery because this level frequently serves as dependable support during bullish trends. 
Furthermore, the RSI has cooled considerably and is currently trading close to neutral levels, indicating that selling pressure may be easing and opening the door for possible bullish momentum. Solana needs to hold its position above the 50 EMA in order for a reversal to occur. If this hold is successful, buyers might intervene, pushing SOL back toward its most recent highs of $240-$260. 
The next crucial step, which could result in new highs, would be to break above this range. The asset may experience additional declines if Solana is unable to hold this support. The next important support levels are $192 and $171. If these levels were broken, it would suggest a change in the overall trend and perhaps a continuation of the bearish momentum. 
It will be crucial for Solana in upcoming trading sessions. Because it will probably determine whether the asset recovers or experiences further losses, traders should keep a close eye on how it interacts with the 50 EMA. Although the battle is far from over, bulls currently have hope thanks to the support at $220.