- Cardano taps a double-bottom pattern for recovery amid an active buy-the-dip scenario.
- XRP downtrend seems exhausted with holders anticipating a breakout to $0.38 and $0.5, respectively.
Some cryptocurrencies like ADA and XRP looked ready to bounce into recovery after nursing wounds week over week. As reported on Thursday, Cardano’s whale cohorts are still focused on stacking more tokens amid a long-term bullish outlook. In other words, large volume holders believe that crypto winter is necessary for future growth by allowing projects to focus on development.
XRP bulls, on the other hand, are working around the clock to change the course of the trend after a descending triangle pattern was validated during the crypto massacre earlier in the week. The cross-border money remittance token plunged to $0.3 before lifting to $0.34. If the weekend session comes with stability, XRP might close the gap to $0.4 and erase the 19% decline suffered while at the same time shifting the attention to $0.5 and $1, respectively.
Cardano Still Undervalued
The market value to realized value (MVRV) by Santiment tracks the profit or loss ratio of ADA holders. This ratio is arrived at by taking note of the last price the tokens exchanged hands at (acquisition) compared to the current market price.
A negative reading, for example -64% as highlighted in the chart below, reveals that more holders would incur losses if they sold ADA at the prevailing price. However, the psychology of an investor is to sell for profit and buy during the dip. Therefore, Cardano’s price may be said to be in a prime position to make a hasty recovery as holders, especially whales, take advantage of the lower price levels to fill their bags.
Cardano MVRV Ratio
Meanwhile, the eight-hour chart shed light on a double-bottom pattern likely to keep the uptick from the recent support at $0.435 intact. If the neckline (broken line) breaks, Cardano’s price may ignite a 34% move to $0.669.
Key barriers must, however, be factored in the impending recovery including the neckline resistance, the 50 SMA, 100 SMA, and the 200 SMA. Possibly, a confirmed break beyond $0.7 will boost ADA price to $1.
ADA/USD Eight-hour Chart
XRP Spots A Bullish Escape
The Direction Movement Index (DMI) might present another positive signal to XRP market participants before the end of Friday. Traders will be looking forward to the –DI crossing above the +DI in the coming sessions.
Consequently, the Parabolic SAR has just flipped to trail the price after adding credence to the bearish technical picture for more than a week. Some of the cues for a continued uptrend would be the expansion of the gap space between the dots (parabolas) as well as maintaining its position below XRP price.
XRP/USD 12-Hour Chart
For now, the main task is to clear the seller congestion at $0.34; a move that will open the buyers’ gaze to higher levels at $0.38 and $0.5. On the flip side, if the bullish escape fails to sail through, support at $0.3 will keep bears at bay.