XRP Could Retest $2 Before Recovering While Bitcoin Eyes $140,000

The native asset of the Ripple network has benefited primarily from legal victories as its long-standing case against the U.S. Securities and Exchange Commission (SEC) paused its efforts against this blockchain company after the Trump administration took over the agency.

Meanwhile, Bitcoin has solidified its reputation as digital gold as it has performed positively despite the turmoil that the financial markets have gone through this year as a result of President Trump’s hostile trade policies.

As the crypto market recovers and technical indicators start to flash buy signals, these two tokens seem poised to deliver strong gains.

Keep an Eye on the $2 Level for XRP

XRP has been dropping in the past four sessions and has broken below its 21-day EMA almost effortlessly.

The fact that there was little struggle from market participants to push the price below this key indicator indicates that bears are in control of the price action.

Trading volumes have been quite stable in the past few days and the next key support to watch could provide the most critical piece of evidence to predict what could happen next.

The 200-day EMA is a landmark indicator that the market watches to analyze the long-term trend of an asset.

We have seen XRP bounce off this moving average multiple times since its November rally but it broke below it recently and now the price is sitting just 7.2% away from it at the time of writing.

The fact that the token dived below the 200-day EMA once already is bad news as it means that a significant volume of orders that were standing by to scoop up XRP once it got to that threshold have now been filled.

Hence, if the price breaks decisively below the 200-day EMA, which currently stands at $2, it would raise the odds of a bearish outlook for XRP.

The token’s volume profile so far this year shows that the $2 level is the lower limit of XRP’s value area – meaning the price zone where the highest trading volumes have occurred throughout this period.

If the opposite occurs and the price bounces strongly off this area, it would confirm our baseline scenario for XRP, which involves a rally to the $3.2 level in the next few weeks following a strong EMA breakout.

BTC Seems Headed to Retest its ATH

Bitcoin’s bear trap after a bearish EMA breakout is one of the strongest buy signals that traders could hope for.

When the market pulls these stunts, it typically triggers both a short squeeze and some FOMO as sellers get fooled and buyers rush in to get in before the price rallies too high.

Now that the 21-day EMA has distanced itself from the 200-day EMA after some heavy-volume sessions, the stage looks set for bulls to make their way to the token’s most recent all-time high.

However, we do see momentum readings showing some signs of weakness as the Relative Strength Index (RSI) has jumped to overbought levels while the MACD’s histogram has been trending lower for more than a week now.

If the price retreats at this point, it could open up a window for late buyers to step in and grab BTC near the $90K support. As long as the 200-day EMA holds, Bitcoin’s outlook will still be bullish.

Meanwhile, history suggests that the price could climb beyond its recent all-time highs to the $140K level based on the results that a golden cross between these two key EMAs has produced the last two times that this technical signal popped up.