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SOL, XRP, ADA, MATIC Tumble as Bitcoin Chills Investors’ Spines!

Published 23/01/2024, 11:56
Updated 23/01/2024, 12:15
© Reuters.  SOL, XRP, ADA, MATIC Tumble as Bitcoin Chills Investors’ Spines!

Coin Edition -

  • SOL could be ready to bounce as the RSI signaled that it was overbought.
  • XRP may drop below $0.50, while ADA showed the potential to fall to $0.40.
  • MATIC experienced a lack of capital inflow, suggesting a decline to $0.68.

According to information acquired from CoinMarketCap, Bitcoin’s (BTC) drop below $40,000 has influenced the prices of Solana (SOL), Ripple (XRP), Cardano (ADA), and Polygon (MATIC).

At press time, SOL changed hands at $84.98—a 5.48% decline in the last 24 hours. XRP dropped to $0.52. ADA’s price decreased to $0.48, while MATIC’s fell to $0.75.

These decreases suggest that the broader crypto market has reached a phase where it cannot evade necessary corrections.

Solana (SOL)

According to the 4-hour chart, SOL’s price had fallen to $82.54. For a token that was almost $130 last Christmas, this recent performance was abysmal and could be linked to profit-booking and a lack of liquidity in the market.

Furthermore, the Chaikin Money Flow (CMF) had dropped to -0.17. The negative reading of the CMF was confirmation of the selling pressure. But if the volume increases while the CMF stays negative, a bullish reversal could be on the cards.

In this instance, SOL might need to garner support at $90.49. It would also need to cross the hurdle at $95.05 to confirm the bullish bias. However, if the price breaks below $80, there is a high chance for SOL to fall as low as $75.

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

The RSI reading at press time was 30.14, suggesting that the token was oversold. For the price to bounce, buying pressure needs to appear. If not, another decline could be in place for SOL.

Ripple (XRP)

XRP showed extreme signs of weakness as the price dropped to $0.52. However, indications from the Bollinger Bands (BB) showed that volatility around the cryptocurrency was starting to increase.

The lower band of the BB also touched XRP at $0.51, suggesting that it was oversold. Due to this, XRP’s price could recover in the short term because of the potential fatigue expected from the heavy selling.

In a highly bullish scenario, XRP could move to $0.55. But the potential to drop below $0.50 remained present.

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

This was because the Awesome Oscillator (AO) was in the negative region, implying the possibility of an increasing downward momentum.

Cardano (ADA)

Despite hitting $0.61 on January 11, ADA dropped to $0.47, indicating that market participants have booked some of the profits. Per the 4-hour chart, the 9 EMA (blue) was at $0.48 while the 20 EMA (yellow) was at $0.49.

With ADA’s price below both EMAs, a recovery could be difficult for ADA. If BTC rises above $40,000 again, ADA might try to hit $0.50. But in a case where the BTC price falls further, ADA could drop as low as $0.40.

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

Polygon (MATIC)

MATIC’s market structure was largely bearish at press time. Coin Edition also found a major resistance at $0.79, where bears seemed to have outpowered bulls. This was also confirmed by the Money Flow Index (MFI), which was 82.52 when the price was $0.79.

But with an increase in selling pressure, the MFI dropped to 35.93. This decline suggests a lack of capital inflow. So, it could be hard for MATIC to move higher. The MACD also supported this bias, as it flipped negative.

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

With the current momentum displayed, MATIC’s price could fall to $0.68 if bulls fail to take back control from bears.

The post SOL, XRP, ADA, MATIC Tumble as Bitcoin Chills Investors’ Spines! appeared first on Coin Edition.

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