Bitcoin’s Drop to $60,000 Raises Concerns for XRP and ADA
Last Updated on May 22, 2024 by Michael Motha
Bitcoin’s recent decline to $60,800 has raised concerns that Ripple (XRP) and Cardano (ADA) may be on the verge of another significant drop. According to Coinglass, this downturn has led to a staggering $156 million in liquidations within the past 24 hours.
The data indicates that a substantial portion of these liquidations were long positions. Specifically, XRP saw approximately $1.80 million in liquidations, while ADA experienced losses totaling $520,000.
As of the time of writing, XRP is trading at $0.50, reflecting a 2.41% decrease over the past 24 hours. Meanwhile, Cardano has dropped by 3.79% to reach a price of $0.44.
XRP Price Analysis
Analysis of the 4-hour XRP/USD chart reveals the formation of a symmetrical triangle pattern, with peaks around $0.55 and troughs near $0.51. Symmetrical triangles typically indicate an impending breakout or breakdown following a period of consolidation.
In the case of XRP, the current pattern suggests a potential breakdown, a view supported by the Exponential Moving Average (EMA) analysis. As of now, the 50 EMA (yellow) has crossed below the 20 EMA (blue), signaling a bearish trend. Given this setup, along with the symmetrical triangle pattern, XRP may decline further to around $0.46.
ADA Price Analysis
Similar indications are observed in Cardano’s structure on the 4-hour chart. The Money Flow Index (MFI) has declined, indicating capital outflows from ADA. This view is further supported by the flat reading of the On Balance Volume (OBV), suggesting a lack of buying interest in ADA.
Given these trends, the next move for Cardano appears to be a decrease. From its recent high of $0.48 on May 10, ADA could potentially drop to around $0.42, representing a 10.93% decline within a short timeframe.
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Michael Motha is the Founder and Managing Director of CryptoNewsOnlineHub and works as a freelance Project Head. He is a dedicated Crypto enthusiast and researcher focusing on blockchain trends, digital assets, and emerging crypto technologies. With academic qualifications in Physics, MBA, and B.Ed from Loyola College, Chennai, he brings clarity to complex crypto topics through insightful content. Outside of crypto, he enjoys blogging, travel, music, and sports such as badminton and tennis.
