Crypto Rally Stalls as Dogecoin Tanks and Bitcoin Tests Key Support: Analysis

There are two types of people in the crypto world: those who think Bitcoin Is fleeting and those who trade meme coins.

Of course Bitcoin has fallen by 3% today, but it is hardly stated in the past week – the movement of only 2% in the last seven days, after having won almost 5% in the last 30 days. It is the kind of lateral action that makes yawning days. But for those who never want ending drama, there are always meme coins.

Dogecoin Is the worst performing currency in the top 10 in market capitalization and will fall by 8% in the past week after winning 20% in the last 30 days. And if you think that is rough, look further down on the top 100: Bonk has fallen more than 20% in the last seven days, while Pepe has sunk 12%.

It places the Bitcoin movements in perspective. And what talked about: the broader market context shows traditional risk assets under pressure while analysts wait to assess whether recent US rates for selected import strengthen or increase inflation because those burdens are absorbed by the general population. The decision of the Federal Reserve to maintain the rates at 4.25% -4.5% also created a wait -and -see environment that is particularly hard on crypto -assets with high beta.

So what do the graphs have to say about BTC?

Bitcoin -Price: a tested triangle pattern

The fall from 3.5% from Bitcoin to less than $ 114,000 places the currency under a technical support that can indicate that deeper corrections can be demonstrated in front of the bow. Selling intensified after Bitcoin broke under the support level of $ 118,859, the downward pressure to the next support accelerated at $ 112,000. BTC horses seem to push the price under the resistance of the symmetrical triangular pattern since last month.

Further MyriadA prediction market developed by DecryptThe parent company Dastan, traders, remain bullish, where users place the chance that BTC touches $ 125k Before you dump back to $ 105k at 55%. But those opportunities are on the way down and fall from 70%yesterday.

In general, however, the weekly graph shows what traders would interpret as a fairly strong bullish momentum, but the pattern may seem a bit worrying.

The relative strength index, or RSI, for Bitcoin is 63, which usually indicates a healthy bullish momentum. But the recent decline of Overbought territory above 70 shows that the sales pressure is building. RSI measures how the market can be a market, from 0 to 100, and usually only 63 points means that there is room for more bullish days without overbought territory.

However, when RSI falls from high levels such as it, it often indicates that the previous rally loses steam and traders must prepare for potential average reversal or at least a correction within the overall bullish trend.

The average directional index, or ADX, for Bitcoin is 28, which would confirm a strong trend strength for traders. But again, The measurements have fallen slightly from previous weeks.

ADX measures the trend strength regardless of the direction. While the strong trend indicator supported the Bitcoin meeting above $ 100,000, the same trend strength that drives up the upward power can strengthen the movements to the disadvantage as soon as the key support levels break. Traders often see ADX above 25 as confirmation that whatever direction the market chooses, it will probably continue with conviction. In other words, do not expect a huge dump, but the volatility after all this compression period would not be unexpected.

Bitcoin’s exponential advancing averages or EMAs tell a more complex story. EMA measures the average price of an active during a certain period. The 50-day EMA from Bitcoin remains above the 200-day EMA, and maintains the technical bullish configuration that has supported Bitcoin’s long-term recording. The gap between the two, at least for the time being, is also expanding – and this is good for long -term Hodlers, a technically minded trader would say.

Key levels:

• Immediate support: $ 110,000 (psychological level and large accumulation zone)
• Immediate resistance: $ 118,859 (23.6% Fibonacci Retracement)
• Strong resistance: $ 122,000 (previous high area of all time)

XRP continues its lateral drift

The decrease from 6.08% from XRP to $ 3.04 continues to reflect the struggle of the currency to break from its recent trade range, despite positive legal developments earlier this year. The technical image shows a market that is stuck in neutral after an extremely accelerated jump in the past year.

The RSI lecture of 61 places XRP in a balanced zone with a bullish tilt – not sold over enough to activate the buying of interest, but not overbought enough to justify profit. This lecture usually suggests that it is actively appreciated at the current level, but also indicates a lack of strong directional convictions of traders.

Telling more is the average directional index reading of only 21, which falls under the crucial 25 threshold that confirms the trend setting. If ADX measurements remain below 25, this usually indicates that an active is instead of trending instead of trending. For XRP this suggests that the recent price promotion is more about consolidation than the start of a new directional movement.

That said, the squeeze momentum indicator shows a contradictory view. (It is not unusual that two technical analysis indicators contradict each other.) Based on the measurements, there is no game in the game and the movement is still bullish and stable. To balance these views, and depending on how long you want to hold the coin, traders can choose to analyze shorter installments. This helps to see earlier switches in the trend.

The advancing average configuration offers some comfort for bulls, whereby the 50-day EMA is still traded above the 200-day EMA. However, the narrow gap between these averages indicates that this bullish setup is fragile and can reverse if the sales pressure intensifies.

Key levels:

• Immediate support: $ 2.90 (recent consolidation low)
• Strong support: $ 2.50 (large psychological level)
• Immediate resistance: $ 3.30 (recent rejection area)
• Strong resistance: $ 3.70 (several months high)

Dogecoin prays for bulls

Dogecoin’s brutal dive from 8% to just over $ 0.20 is the most serious decrease in the large cryptocurrencies and emphasizes the vulnerability of meme coins in the current market environment. The technical image has deteriorated considerably, with bearish indicators that blink warning signals over multiple timetables.

The RSI lecture of 50 is exactly on the neutral center, which may seem balanced, but actually represents a loss of bullish momentum. For a meme, such as doge that is highly dependent on the enthusiasm of the retail trade and the buzz of social media, an RSI lecture that is neither sold nor over -bowt, often indicates, decreasing interest instead of balance.

Perhaps the most disturbing is the average directional index reading of only 16, well under the 25 threshold that confirms the trend strength. Low ADX measurements after a considerable decline often indicate that the sales pressure is not strong enough to stimulate further disadvantage, but it also means that buying interest is insufficient to support a recovery.

The Squeeze -Momentum indicator shows the status “OP”, suggesting that the compression of volatility is building. Until now, the coin has retained a bullish support since June on a bullish double bottom movement. However, the prices ended this week that zone tested again. If the Bearish stay next week, such a pattern can be considered a false signal and $ 0.15 could again be a support for testing. If there is a recovery, the double bottom remains valid, the support remains in the game and a path to $ 0.30 remains possible in the medium term

Key levels:

• Immediate support: $ 0.20 (psychological level and current test)
• Strong support: $ 0.18 (major support for previous consolidation)
• Immediate resistance: $ 0.22 (broken support became resistance)
• Strong resistance: $ 0.26 (the large resistance area throughout the year)