Bullish Sentiment Rises for ETH, ADA, XRP After Market Flush

Last Updated:
ETH, ADA, XRP Eye Recoveries Following Bullish Sentiment
  • If ETH crosses the $2,500 resistance, it could rise above $2,700.
  • ADA’s support at $0.55 could be the catalyst that leads to a rise beyond $0.60.
  • Should XRP bulls breach $0.62, the price might have a clear path to $0.65.

According to crypto analysis tool Santiment, traders are bullish on the trio of Ethereum (ETH), Ripple (XRP), and Cardano (ADA). The post also noted that ETH, in particular, was the major beneficiary of this perception because of its earlier rise to $2,700.

To arrive at this conclusion, Santiment employed the Weighted Sentiment on-chain metric. The Weighted Sentiment considers the unique social volume to determine if the average comment about a cryptocurrency is positive or otherwise.

When the metric is negative, it means traders are bullish. But when it is positive, it suggests bullish sentiment, like it was with ETH, ADA, and XRP.

ETH Price Analysis

At press time, ETH had fallen from the $2,700 peak and was trading at $2,554. But before retesting $2,556, ETH’s price dropped to $2,472.

However, the RSI shown on the 4-hour chart showed that ETH was also overbought initially on January 11. At that time, the RSI was 80.50. This contributed to the price drop. 

Furthermore, the indicator did not drop below the 50.00 midpoint, indicating that bulls were able to defend ETH’s momentum. Should buying mometum return to ETH, the coin might be able to tap the $2,500 psychological resistance.

If this happens, ETH might eye a new yearly high probably crossing the $2,700 mark. For this to occur, the MACD has to become positive especially as it was -16.74 at press time. 

ETH/USD 4-Hour Chart (Source: TradingView)
ETH/USD 4-Hour Chart (Source: TradingView)

If the MACD turns from its downward direction, then ETH momentum could be northward and trigger a price rise.

ADA Price Analysis

The ADA/USD 4-hour chart showed that the price had broken below the $0.60 psychological zone. The breakdown below this crucial area was proof of the concentrating selling pressure which began on January 11.

However, there seems to have been a shift in investor sentiment as the price tried to rise above $0.55. If bulls capitalize on this zone, then they might edge sellers out while looking to breach the $0.60 resistance.

Also, the 20 EMA (blue) crossed over the 50 EMA (yellow), indicating that the next trend for ADA could be bullish. These EMAs were also around $0.55, meaning the price level could serve as support for the next leg up.

ADA/USD 4-Hour Chart (Source: TradingView)
ADA/USD 4-Hour Chart (Source: TradingView)

XRP Price Analysis

XRP’s market structure was similar to ADA. After dropping as low as $0.55, XRP rebounded to $0.57. This increase suggests that there has been some buying pressure from the lows.

The notion was also supported by the RSI which was a little beneath the 50.00 midpoint. The RSI reading suggests that previous selling pressure was no more intense.

However, if bulls want to push XRP toward $0.65, they need to outpace the selling pressure at $0.62. If this happens, it could clear the path to $0.65.  But it is also possible for bears to resist the potential upward move. 

If bears succeed, XRP could be on the verge of a decline to $0.50. On the other hand, bulls might have an edge, especially as the Chaikin Money Flow (CMF) rose to 0.22. 

XRP/USD 4-Hour Chart (Source: TradingView)
XRP/USD 4-Hour Chart (Source: TradingView)

The CMF reading indicates that XRP’s buying momentum was much more than the selling pressure. So, XRP’s chance of hitting $0.60 was more than the possibility of dropping to $0.50.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.