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Massive XRP Reversal: Breakout Next? Toncoin (TON) to Face Biggest Resistance Since August, Ethereum (ETH) in Poor State

Published 2024-09-13, 08:01 p/m
Massive XRP Reversal: Breakout Next? Toncoin (TON) to Face Biggest Resistance Since August, Ethereum (ETH) in Poor State
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U.Today - Grayscale recently announced new trusts for SUI and XRP⁠⁠⁠⁠⁠⁠⁠, which caused XRP's price to soar. As investors responded favorably to the development, the news served as a major catalyst driving the asset higher.

But bears quickly increased their selling pressure in response to this bullish momentum, resulting in a sharp pullback that threatened to topple the rally. XRP is still in a somewhat favorable position in spite of the seller's prompt response. The asset looks to have strong upward potential and the price is still rising, holding onto some of the gains from the Grayscale announcement.

XRP's current price levels indicate there may still be room for the rally even though the selling pressure has subdued the initial bullish enthusiasm. The recent price movement can be understood as a component of a larger pattern of volatility when considering the overall context of the market. The launch of Grayscale's trust has given XRP the impetus required for a potential uptrend, which has investors eagerly awaiting any breakout moments.

But bears' swift retraction emphasizes how brittle the market is and how crucial it is to break through resistance levels in order to see a long-term price increase. In order to witness additional upward movement, XRP must overcome the present selling pressure and breach significant resistance levels. The asset may rise in price if bulls are able to take back control, particularly if the sentiment of the market as a whole is still positive.

Toncoin aims high

The 200 EMA represents a significant technical barrier for Toncoin right now. In figuring out the asset's short-term trajectory, this level is essential. One possible indication of the beginning of a recovery akin to the one that was seen when Toncoin broke through the 100 EMA in August would be a successful breakout above the 200 EMA.

Although the 200 EMA is currently a strong barrier for TON, a breach of it could lead to additional price growth. The confirmation of bullish momentum will be closely monitored by traders and investors alike through sustained price action above this level. A significant move above this barrier might force TON back up toward higher price tiers, possibly retesting earlier-in-the-year highs.

However, the consistency of inflows is essential to maintaining any prospective breakout. Continuous inflows and buying pressure are necessary for TON to continue on its upward trajectory. In the event that there is insufficient stable capital support, the breakout may turn out to be a false signal. More consolidation or even a retracement back to support levels would probably result from this.

Ethereum facing difficulties

As the market shows a marked lack of momentum, Ethereum is currently going through a difficult time. The second-largest cryptocurrency by market capitalization is finding it difficult to gain traction despite having a noticeable online presence and the efforts of its cofounder, Vitalik Buterin.

The main cause of this decline is thought to be a more serious problem with the Ethereum network itself. Recent statistics indicate that since the platform's launch, Ethereum's network activity has not been this low. There is a clear decline in user engagement and transaction volumes, which points to a larger ecosystem crisis.

This is especially worrying at a time when a lot of other well-known cryptocurrencies are either recovering or are at least performing steadily. On the other hand, there are indications of expansion and higher usage on alternative networks like Solana and Telegram Open Network (TON). These more recent networks are appealing substitutes for decentralized applications (dApps) and other blockchain-based solutions since they provide cheaper costs and faster transaction speeds.

Ethereum faces the risk of losing ground to these more capable rivals if it does not improve on its poor performance and expensive gas prices. Given Ethereum's current circumstances, a considerable loss of market share may ensue as the larger cryptocurrency market makes an effort to recover.

This article was originally published on U.Today

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