Market Downturn
The cryptocurrency market experienced a massive crash recently, resulting in leading altcoins plummeting by double digits. Ripple’s XRP and Cardano’s ADA were among the hardest-hit assets during this downturn, with XRP falling 17% and ADA falling 18% within a 24-hour period.
Technical Indicators
The general sentiment for XRP is notably bearish. A comprehensive analysis of 29 technical indicators reveals a strong bearish trend for XRP, with 94% of these indicators suggesting a downturn and only 6% pointing towards a potential bullish trend. Similarly, Cardano’s ADA displays bearish characteristics with 78% bearish indicators and 22% bullish indicators.
Moving Averages
Both daily and weekly Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) for XRP and ADA indicate a strong ‘sell’ option. These moving averages reflect significant selling pressure on both cryptocurrencies, reinforcing the bearish sentiment prevailing in the market.
Market Pressure
The broader global economy is experiencing considerable macroeconomic pressure, with signs pointing towards a recession in the United States. Both the global stock markets and cryptocurrency markets have been notably declining since Friday, with no immediate signs of recovery in sight. This macroeconomic climate is exacerbating the downturn experienced by cryptocurrencies.
Future Outlook
Looking forward, both XRP and ADA are expected to remain under significant pressure throughout August. Market analysts predict minor to no price increases for these cryptocurrencies in the near term. The ongoing market downturn, coupled with geopolitical uncertainties, are likely to continue affecting XRP and ADA adversely.
Bitcoin’s Influence
The performance of Bitcoin (BTC) holds significant sway over the prices of XRP and ADA. If Bitcoin continues to decline, it could further exacerbate the downturn for these altcoins, compounding the challenges they face in the market.
Recovery Challenges
There are several challenges hindering a quick recovery for XRP and ADA. One notable factor is the monthly unlocking of over a billion XRP tokens, which creates immense selling pressure. Moreover, high interest rates and ongoing geopolitical uncertainties add to the overall difficulties faced by these cryptocurrencies in regaining their value.
Overall, the current forecast for XRP and ADA paints a bearish picture. Various technical indicators, market trends, and broader economic factors all contribute to the outlook of continued pressure and potential downturns for these cryptocurrencies in the short term.