Date: Fri, Jan 31, 2025, 11:23 AM GMT
The cryptocurrency market is showing fresh momentum, with altcoins gaining strength following Bitcoin’s (BTC) reaction to the latest FOMC decision. With interest rates left unchanged, BTC initially spiked to $106K before settling near $104,700. This has set the stage for Ethereum (ETH) and XRP (XRP) to make significant moves, as both tokens are testing key resistance levels.
Ethereum (ETH)
Ethereum’s price action has been consolidating within a falling wedge pattern—a classic bullish reversal signal. After retreating from its December 16 high of $4,109, ETH has been repeatedly testing both resistance and support within this channel.
Recently, ETH bounced from the 200 SMA support and has now climbed to $3,328. It is currently testing the upper resistance of the wedge, making this a crucial moment for a potential breakout.
If ETH manages to break out and confirm the move with a retest, it will need to clear resistance at the 50 SMA and 100 SMA. A successful push past these levels could send ETH towards its next key resistances at $3,744 and $4,106, representing a potential upside of 22% from current levels.
XRP (XRP)
On the 4-hour chart, XRP recently bounced off its 100 SMA support at $2.65 and is now trading around $3.09. It is holding support at the 25 SMA while approaching a similar descending trendline that has previously led to strong breakouts.
This setup mirrors past patterns where XRP’s 25 SMA support near the descending trendline turned into a breakout trigger, as marked by the blue circles.
If XRP can push above this trendline, the next major resistance level stands at $3.38. A breakout above this mark could pave the way for an extended rally.
Is a Rally Incoming?
Both ETH and XRP are at critical junctures. If they manage to break their respective resistance levels with strong volume, the chances of a sustained rally increase. However, if they fail to break out, both tokens could face significant declines, potentially revisiting lower support levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.