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XRP Surges 8% After Breaking Months-Long Downtrend — ADA and SOL Show Similar Patterns

MarketDash Editorial Team
3 days ago
XRP jumped over 8% in 24 hours after finally breaking free from a downtrend that started at August's $3.4 peak, while Cardano and Solana are setting up similar breakout patterns that could signal the next wave of crypto rallies.

After months of grinding lower since August's $3.40 peak, XRP (XRP) finally caught a bid. The token rallied over 8% in 24 hours, breaking through a downtrend that had been keeping bulls frustrated for the better part of half a year. Meanwhile, Cardano (ADA) and Solana (SOL) are showing eerily similar setups that could follow suit if key technical levels hold.

XRP Reclaims Critical Moving Averages

XRP pulled off something it hasn't managed in months: it reclaimed the $1.80 support level that had become something of a do-or-die line in the sand, then proceeded to blast through the 20 EMA at $1.97 and the 50 EMA at $2.05. Now it's testing the 100 EMA at $2.22, which is where things get interesting.

The move came after a successful retest of multi-month lows around $1.80, forming what technical traders love to see—a potential double-bottom pattern. These formations typically signal that sellers are exhausted and a trend reversal might be brewing.

What's particularly notable is the Supertrend indicator flipping to $1.87. Instead of acting as resistance pushing price down, it's now providing dynamic support underneath. That's a meaningful shift in momentum, the kind that suggests more than just a dead-cat bounce.

The sharp vertical move accompanied by increasing volume points to strong buyer conviction after months of sideways consolidation. When price compresses for that long and then breaks out with volume, it tends to stick.

The next major hurdle sits at $2.35, where the 200 EMA looms as both a psychological and technical barrier. Getting above that level would be a significant statement.

Upside targets: Immediate resistance is at $2.22 (the 100 EMA), followed by $2.35 (200 EMA). Breaking above $2.40 opens a path toward $2.60-$2.70, then $3.00, and eventually the descending trendline resistance around $3.20-$3.40.

Downside risks: Support rests at $2.05 (50 EMA), with secondary support at $1.96 (20 EMA) and a critical floor at $1.87 (Supertrend). Falling below $1.80 would invalidate the bullish structure and likely target $1.60-$1.70.

Cardano Escapes Falling Wedge Compression

Cardano (ADA) rallied over 4%, executing a textbook breakout from a falling wedge pattern that had been squeezing price action since October. After bottoming near $0.35 in late December, ADA pierced through the wedge's upper boundary and is now testing the 20 EMA at $0.38.

Falling wedges have a tendency to resolve to the upside—it's one of those patterns that actually has decent predictive value. This breakout is backed by strong volume, which suggests genuine buying interest rather than a head-fake that collapses back into the pattern.

The SAR indicator flipped to $0.34, providing dynamic support below current price. That gives bulls a bit of breathing room.

Based on the wedge breakout's measured move, the projected target lands around $0.50-$0.52, which conveniently aligns with the 100 EMA. When technical projections line up with moving averages, traders pay attention.

Upside targets: First resistance appears at $0.42 (50 EMA), then $0.45-$0.47. Breaking $0.50 targets the 100 EMA at $0.51, with ultimate resistance at $0.59 (200 EMA). Clearing $0.60 opens a path toward $0.70-$0.75.

Downside risks: Support sits at $0.38 (20 EMA), with critical support at $0.35 at the wedge base. Losing $0.34 (SAR) would invalidate the breakout and likely target $0.30-$0.32.

Solana Breaks Above 20 EMA After Testing Double Bottom

Solana (SOL) climbed over 2%, breaking above the 20 EMA at $128.88 after successfully defending the critical $120-$122 support zone through multiple tests in December. That repeated defense of a level is exactly what creates a double-bottom pattern—sellers keep trying to break it, and buyers keep stepping in.

There's massive trading activity clustered between $120-$140, establishing this as a major accumulation zone where institutional players likely stepped in. High volume at specific price levels tells you where the big money thinks value exists.

The double-bottom at $122 gains credibility when you combine it with that high-volume support. It's not just a chart pattern—it's evidence of real buying interest.

The real test lies ahead at the $133-$140 resistance band, which comes before the much heavier supply zone at $191. The descending trendline from November's $240 peak continues to pressure price, currently intersecting around $145. That's a lot of overhead resistance to chew through.

Upside targets: Breaking $140 clears both the 50 EMA and the descending trendline convergence. Beyond that, $150 (100 EMA), then $162 (200 EMA). The critical battleground sits at $191—that's where significant supply awaits. Clearing $191 opens the door to $220-$240.

Downside risks: The $128 level (20 EMA) needs to hold as support. Breaking $122 would collapse the double-bottom structure, likely targeting $110-$115. Ultimate support sits at $101.

All three tokens are showing similar breakout patterns after extended periods of consolidation. Whether they follow through depends on maintaining these newly reclaimed support levels and, more importantly, whether broader crypto market conditions cooperate. Technical setups only work when the fundamental backdrop allows them to.

Back to Stock Market News

XRP Surges 8% After Breaking Months-Long Downtrend — ADA and SOL Show Similar Patterns

MarketDash Editorial Team
3 days ago
XRP jumped over 8% in 24 hours after finally breaking free from a downtrend that started at August's $3.4 peak, while Cardano and Solana are setting up similar breakout patterns that could signal the next wave of crypto rallies.

After months of grinding lower since August's $3.40 peak, XRP (XRP) finally caught a bid. The token rallied over 8% in 24 hours, breaking through a downtrend that had been keeping bulls frustrated for the better part of half a year. Meanwhile, Cardano (ADA) and Solana (SOL) are showing eerily similar setups that could follow suit if key technical levels hold.

XRP Reclaims Critical Moving Averages

XRP pulled off something it hasn't managed in months: it reclaimed the $1.80 support level that had become something of a do-or-die line in the sand, then proceeded to blast through the 20 EMA at $1.97 and the 50 EMA at $2.05. Now it's testing the 100 EMA at $2.22, which is where things get interesting.

The move came after a successful retest of multi-month lows around $1.80, forming what technical traders love to see—a potential double-bottom pattern. These formations typically signal that sellers are exhausted and a trend reversal might be brewing.

What's particularly notable is the Supertrend indicator flipping to $1.87. Instead of acting as resistance pushing price down, it's now providing dynamic support underneath. That's a meaningful shift in momentum, the kind that suggests more than just a dead-cat bounce.

The sharp vertical move accompanied by increasing volume points to strong buyer conviction after months of sideways consolidation. When price compresses for that long and then breaks out with volume, it tends to stick.

The next major hurdle sits at $2.35, where the 200 EMA looms as both a psychological and technical barrier. Getting above that level would be a significant statement.

Upside targets: Immediate resistance is at $2.22 (the 100 EMA), followed by $2.35 (200 EMA). Breaking above $2.40 opens a path toward $2.60-$2.70, then $3.00, and eventually the descending trendline resistance around $3.20-$3.40.

Downside risks: Support rests at $2.05 (50 EMA), with secondary support at $1.96 (20 EMA) and a critical floor at $1.87 (Supertrend). Falling below $1.80 would invalidate the bullish structure and likely target $1.60-$1.70.

Cardano Escapes Falling Wedge Compression

Cardano (ADA) rallied over 4%, executing a textbook breakout from a falling wedge pattern that had been squeezing price action since October. After bottoming near $0.35 in late December, ADA pierced through the wedge's upper boundary and is now testing the 20 EMA at $0.38.

Falling wedges have a tendency to resolve to the upside—it's one of those patterns that actually has decent predictive value. This breakout is backed by strong volume, which suggests genuine buying interest rather than a head-fake that collapses back into the pattern.

The SAR indicator flipped to $0.34, providing dynamic support below current price. That gives bulls a bit of breathing room.

Based on the wedge breakout's measured move, the projected target lands around $0.50-$0.52, which conveniently aligns with the 100 EMA. When technical projections line up with moving averages, traders pay attention.

Upside targets: First resistance appears at $0.42 (50 EMA), then $0.45-$0.47. Breaking $0.50 targets the 100 EMA at $0.51, with ultimate resistance at $0.59 (200 EMA). Clearing $0.60 opens a path toward $0.70-$0.75.

Downside risks: Support sits at $0.38 (20 EMA), with critical support at $0.35 at the wedge base. Losing $0.34 (SAR) would invalidate the breakout and likely target $0.30-$0.32.

Solana Breaks Above 20 EMA After Testing Double Bottom

Solana (SOL) climbed over 2%, breaking above the 20 EMA at $128.88 after successfully defending the critical $120-$122 support zone through multiple tests in December. That repeated defense of a level is exactly what creates a double-bottom pattern—sellers keep trying to break it, and buyers keep stepping in.

There's massive trading activity clustered between $120-$140, establishing this as a major accumulation zone where institutional players likely stepped in. High volume at specific price levels tells you where the big money thinks value exists.

The double-bottom at $122 gains credibility when you combine it with that high-volume support. It's not just a chart pattern—it's evidence of real buying interest.

The real test lies ahead at the $133-$140 resistance band, which comes before the much heavier supply zone at $191. The descending trendline from November's $240 peak continues to pressure price, currently intersecting around $145. That's a lot of overhead resistance to chew through.

Upside targets: Breaking $140 clears both the 50 EMA and the descending trendline convergence. Beyond that, $150 (100 EMA), then $162 (200 EMA). The critical battleground sits at $191—that's where significant supply awaits. Clearing $191 opens the door to $220-$240.

Downside risks: The $128 level (20 EMA) needs to hold as support. Breaking $122 would collapse the double-bottom structure, likely targeting $110-$115. Ultimate support sits at $101.

All three tokens are showing similar breakout patterns after extended periods of consolidation. Whether they follow through depends on maintaining these newly reclaimed support levels and, more importantly, whether broader crypto market conditions cooperate. Technical setups only work when the fundamental backdrop allows them to.