XRP Approaches Horizontal Support as Cryptocurrency Market Experiences Slowdown in Momentum
In recent days, the XRP cryptocurrency and other major digital assets have seen a slowdown in momentum as they approach a horizontal support level. The term “horizontal support” refers to a price level where cryptocurrencies are expected to see buying interest that helps prevent a price decline. If a cryptocurrency breaks below this support level, it could signal a continuation of a downward trend.
Currently, the market situation for XRP and other cryptocurrencies is characterized by consolidated levels, with a slowdown in the momentum behind this year’s crypto rally. Bitcoin, the largest digital asset, dipped 0.3% in the past 24 hours to $23,111, while Ether, the second-largest crypto, saw a less than 1% increase to $1,650. Other smaller cryptos, or altcoins, were mostly unchanged, with Cardano down less than 1% and Polygon up 3%.
The recent rally in cryptocurrencies was tied to major stocks, with the Dow Jones Industrial Average and S&P 500 starting the year with a strong performance and a risk-on sentiment. However, there are also technical factors that support a bullish outlook for Bitcoin, such as the fact that the world’s largest cryptocurrency has never fallen for two consecutive calendar years. The current bear market has lasted over a year.
According to Matthew Sigel, the head of digital assets research at fund manager VanEck, the global money supply is one of the reasons behind Bitcoin’s weakness. The three-month rate of global money supply change currently exceeds the 12-month change, which tends to be a positive indicator for those expecting Bitcoin to bottom out.
In conclusion, the XRP cryptocurrency and other major digital assets are experiencing a slowdown in momentum as they approach a horizontal support level. However, there are technical and fundamental factors that support a bullish outlook for Bitcoin.
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