XRP Reversal Can End Here, Bitcoin (BTC) Sets Sights on $200,000, Dogecoin (DOGE) Skyrockets by $30 Billion in 7 Days

Cover image via U.Today

As Bitcoin relentlessly approaches $100,000, XRP recently broke through the psychological barrier of $0.60, which was expected to propel it further. However, investors are expressing concerns as XRP shows signs of a potential reversal instead of progressing in tandem.

Despite positive market conditions leading to gains for even minor speculative assets, XRP inexplicably hesitates. Despite its strong momentum in early November, its price chart indicates resistance near $0.60.

If purchasing support remains weak, this level may signal a potential turning point. Technical indicators, such as the Relative Strength Index (RSI), indicate XRP approaching overbought levels, suggesting the recent surge may be waning.

The market's current Bitcoin dominance and its impact on other cryptocurrencies may be contributing to XRP's relative underperformance. Leading altcoins like XRP typically follow Bitcoin's lead during bull markets.

However, the subdued reaction to XRP could indicate either market caution or profit-taking by large holders (whales). The 50 and 200-day moving averages remain below the current price, indicating substantial underlying support for XRP in the $0.54 to $0.55 range. This area may act as a cushion if the current rally falters. If XRP holds above this range and establishes support, it could avoid a deeper correction and potentially align with Bitcoin's ongoing ascent.

Bitcoin Aims Higher

Bitcoin is on an impressive upward trajectory, targeting the lofty $200,000 mark. Many investors anticipate Bitcoin crossing this milestone as its price continues to reach new heights. The current chart shows Bitcoin moving in a strong upward channel, surpassing significant resistance levels. High volume and upward-sloping exponential moving averages (EMAs) indicate strong momentum.

The breakout from a recent consolidation phase and the surge above $80,000 have laid a solid foundation for future gains. The Bitcoin Rainbow Chart, updated for 2023, suggests Bitcoin remains in a favorable position for continued growth. The chart's red band, historically used as a sentiment indicator, signifies a potential top and overvaluation.

As Bitcoin remains below this red zone, there is confidence that the current price level can hold for some time, presenting upside potential. Another reliable Bitcoin indicator, the Two-Year MA Multiplier, suggests a possible price peak around $200,000.

Bitcoin's approach to the red line in this model may signal the final leg of the bull market, correlating with previous cycle peaks. While precise percentage projections are speculative, Bitcoin's current trend and strong technical indicators provide a reasonable chance of reaching $200,000, potentially between 40 and 50%, assuming continued institutional interest, favorable macroeconomic conditions, and positive market sentiment. Investors should exercise caution, as volatility can alter the course of events quickly.

Dogecoin Secures Explosive Growth

Dogecoin has witnessed remarkable growth, adding a staggering $30 billion to its market capitalization in just a week. With Dogecoin leading the charge, this surge highlights the enduring influence of meme coins in the cryptocurrency market.

Dogecoin has seen a substantial increase in wallets holding less than 100,000 DOGE in recent weeks, with 74,885 new wallets added, signaling high retail interest. This influx of smaller holders suggests growing retail confidence in DOGE, a crucial factor in sustaining its upward momentum.

However, larger investors known as sharks and whales have decreased their holdings over the past month, resulting in a net decrease of 350 wallets. Despite this, 108 whale wallets re-entered the market in recent days, potentially contributing to the rally that saw DOGE reach $0.40, a level unseen in over three years.

A technical analysis of Dogecoin's price chart reveals a clear bullish phase. The price has surged, reaching heights reminiscent of its earlier highs in early 2021.