The market dominance of Ethereum should not be forgotten as the market-wide recovery affects SHIB and XRP, which are rallying forward and might see a bullish rally continuation starting from Sept. 10. Despite our previous gloomy market review, the overall state of the industry is becoming healthier.
Don't forget Ethereum
At a time when many altcoins are still having difficulties, Ethereum (ETH) has once again reminded the market of its dominance and resilience. The fact that ETH, the second-largest cryptocurrency by market capitalization, has recovered well from recent declines and is currently trading at about $4,372 shows that it still has the strength to influence overall market trends.
Following its ascent above the crucial $4,000 support zone, ETH steadied itself within a narrow range without ever displaying signs of weakness. By acting as a dependable floor and deterring bears, the 50-day EMA at $4,168 has offered a solid technical foundation for a recovery. Now that ETH is maintaining a strong hold above this level, traders are paying closer attention to a potential trend reversal that might push the token back toward the $4,600-$4,800 resistance zone.
Ethereum’s ability to hold its ground while Bitcoin consolidates is what makes this most recent move noteworthy. With ETH potentially leading the next bullish wave instead of just following BTC, this decoupling suggests a change in the market’s structure. This view is supported by the RSI, which is currently at 52, indicating that Ethereum has recovered from overbought conditions while still having a lot of room to rise.
Volume has stabilized, indicating steady participation without speculative blow-offs, despite not being as explosive as it was during the rally in July. This stability is crucial because Ethereum has the technical basis to stage another leg higher if inflows of new capital resume.
Ethereum’s recent performance is a reminder of its dominance on the cryptocurrency market. It is evident that the asset is far from depleted when it maintains above $4,000 and defends its moving averages. ETH may be the first significant altcoin to signal a significant market-wide reversal if the current momentum continues, reaffirming its position as the leader in price action and innovation in the digital asset space.
XRP takes its shot
XRP is pushing above $3.00 after recovering from the $2.77 support zone, indicating that it is once again showing signs of strength. This move appears promising at first glance, particularly given that the asset has tested and remained above important short-term moving averages.
However, given the state of the market, investors should exercise caution because what appears to be the beginning of a breakout could still be a dead cat bounce. From July highs around $3.80, the chart shows a distinct descending resistance line, which XRP is currently reapproaching. A stronger bullish case would be confirmed by breaking through, but history demonstrates that such levels frequently serve as a trap for eager buyers.
A quick retracement and another rejection could result from failing to maintain momentum at this point. The 50-day EMA at $3.07 is a potential immediate resistance level that heightens the caution. It is probable that sellers will reenter the market if XRP does not close significantly above it. A break below the 200-day EMA at $2.53 would turn the structure bearish once more, with the 100-day EMA at $2.78 serving as crucial support.
Momentum indicators lend credence to this cautious perspective. The RSI is at 55, slowly rising but not yet displaying a strong sense of bullishness. The current rally may not have the depth required for a long-lasting trend reversal, as evidenced by the muted volume, in contrast to the explosive rallies earlier this summer.
Even though XRP’s rise above $3.00 is positive, it is still much too soon to rejoice. Before announcing a win, traders should prepare for the possibility of rejection and revocation. The current move runs the risk of being little more than a brief bounce unless XRP can break its descending trendline with significant volume.
Shiba Inu speeds up
Following its breakout from a consolidation pattern, Shiba Inu's rally is evidently picking up speed. After soaring past the $0.00001287-$0.00001297 resistance cluster created by the short-term moving averages, the token is now trading close to $0.00001307. Bulls now feel more confident, and the technical setup of SHIB has received more attention as a result of this breakout. SHIB appears well-positioned for future gains at its current levels.
The next significant test is the 200-day EMA at $0.00001386; a strong breakout above it might push the rally further toward the $0.00001500-$0.00001600 region, which was last observed in mid-August. Momentum indicators lend credence to this optimistic outlook: the RSI has increased to 55, indicating increasing buying interest without yet displaying overbought conditions. Additionally, the volume has increased, confirming that this rally has real momentum.
The longer-term structure has not changed much despite the short-term outlook appearing solid. SHIB is still trading well below the $0.00002000 levels, which marked the end of the summer rally, and the asset is still threatened by the larger downtrend that started following the 2021 highs. Though encouraging, the current breakout does not yet signify a significant change in Shiba Inu's macro outlook.
The 200 EMA, which frequently serves as a major barrier, is another area where investors should be wary of possible volatility. If Shiba Inu does not make a strong push, there may be a retracement back toward the support level of $0.00001280. There is a strong technical setup for short-term traders to keep an eye on, and Shiba Inu's bullish rally is accelerating at the current levels.
The current state of the market expresses some hope for bulls as multiple assets are showing signs of accumulation and might provide us with grounds for recovery sooner than anticipated. Risks of a bearish reversal are still there, though.
