XRP and Cardano: Recovery Prospects Amid Market Volatility

XRP and Solana lead recent crypto gains; Cardano shows mixed signals. Powell’s comments on inflation impact market sentiment, leading to chart analyses of both tokens. Cardano rebounded from $0.510 but faces resistance at $0.660. XRP struggles against a downtrend, hinting at potential short positions at $2.13 – $2.11.

In recent cryptocurrency developments, XRP and Solana have emerged as notable winners among the top ten coins, achieving gains of 5.4% and 18.2%, respectively, over the past week. In contrast, Bitcoin rose by 3.8% and Cardano only saw a minor increase of 0.2%. This growth occurs amidst a volatile macroeconomic backdrop, highlighted by Federal Reserve Chairman Jerome Powell’s insights on inflation risks linked to political decisions.

Powell indicated challenges in fulfilling the Fed’s dual mandate of promoting growth while maintaining inflation below 2%. This has set the stage for varying performances in the cryptocurrency market as traders assess potential trends in tokens such as XRP and Cardano amidst macroeconomic uncertainties.

Examining Cardano’s price action, it has rebounded significantly from the $0.510 level, following changes in trade policies. The formation of a double-bottom pattern at this support level, coupled with positive momentum indicators, suggests potential upside. Bullish traders successfully reclaimed the $0.570 support zone and may aim for a retest of previous trend line supports.

The recent buy signal from the Relative Strength Index (RSI) on April 9th indicates a possible trend reversal, though the reliability is tempered by a neutral slope in the 14-day Simple Moving Average (SMA). The most significant resistance is evident with the 21-day Exponential Moving Average (EMA), where past price actions have repeatedly failed to break above, hinting at a possible retest of $0.570, indicating downside risk.

Volume analysis illustrates strong selling pressure at $0.660, just above the Point of Control (POC). If the price reaches this level again without surpassing the 21-day EMA, there might be a sell-off towards $0.500.

On the other hand, XRP has faced a persistent downtrend since its January highs. Following a rebound from $1.60, XRP’s attempts to breach the 21-day EMA have encountered formidable selling pressure, resulting in lower price levels.

Recent analysis of the hourly chart reveals two crucial selling zones, while a previous support level marked on the chart underscores potential trading opportunities during the current American session. Should price approach the $2.13 – $2.11 range and fail to break out above, traders might consider establishing short positions, as this area is recognised by market participants as significant for price action dynamics.