How Bitcoin Holds Strong Amid Rising War Fears While XRP, ADA, and SOL Face Key Technical Tests

Midweek, the crypto market began declining, with the altcoins falling significantly while Bitcoin remained stable above $104,000.

This was due to tensions in the Middle East and economic worries, which made traders to take tough decisions. Large assets like Altcoins such as XRP, Cardano, BNB, Solana, and Hyperliquid are exhibiting varied patterns some gearing for a breakout while others are facing resistance.

There may, however, be a positive effect on the industry in the long term, with a new significant US law, particularly for stablecoins.

Altcoins Drop

Altcoins pulled the market down on Wednesday. Ethereum lost 2.5 percent to slightly above $2,500, Cardano lost 4 percent to $0.616, and XRP dropped 3.4 percent to $2.16. Solana lost 2.6 percent and BNB lost 0.5 percent. Hyperliquid’s HYPE token saw one of the largest declines, losing over 8 percent during the period.

XRP Range-Bound, But Watch for a Break

XRP continues to fluctuate between $2.00 and $2.65, forming a broad consolidation range. Though buyers can be noticed near support, the token is yet to break out of the upper end. If XRP is able to sustain above $2.65, then it can quickly move to $3.00. But if there is a breakdown below $2.00, then prices would head towards the $1.61 level.

Current uncertainty is reflective of larger market hesitation, yet the range may hold spectacular upside potential if momentum returns to the altcoin class.

Cardano (ADA): Comeback Does Not Appear Strong

Cardano remains weak as it is unable to maintain the $0.60 support. The price action has been weak, with the 20-day EMA moving down and RSI showing bearish pressure. If ADA dips below $0.60, it will experience a steep fall to $0.50.

For the bulls to shift sentiment, however, they must propel the token through its moving averages and above the downtrend line. Short-term, Cardano’s outlook is tenuous, with short-term rallies destined to be sold into.

Hyperliquid (HYPE): Bulls Regain Command

HYPE is one of the few altcoins that have evident bullish momentum. Having broken the $44 resistance level on Monday, the token maintained its uptrend with decent volume. If the bulls persist with this, HYPE can shoot up to the next target price of $50.

Technically, the token overruled a bearish RSI divergence, which showed new strength. However, the traders should remain vigilant on the 20-day EMA around $38.71 for any potential downside correction since a fall below there can trigger short-term profit-taking.

Solana (SOL): Consolidation Between Key Levels

Solana has been trading horizontally between $140 and $185, with both buyers and sellers defending their levels. The flat moving averages and neutral RSI suggest that the consolidation may continue in the short term.

If the bulls take out the line of $185, the price can surge up to $210 or even $220. On the other hand, a fall below $140 would open the gates for a deeper fall to $110.

BNB: Range-Bound But Stable

BNB is oscillating within a broad channel of $634 to $693. The buyers have managed to retrace the 20-day EMA, reflecting some short-term resilience but with minimal momentum. A break above $693 would result in a rise to $732, while a fall below $634 would be bullish for the bears and could see BNB fall to $580.

With the RSI back at the middle and moving averages converging, the market is primed to await a directional trigger.

Bitcoin Stays Strong While Others Fall

Bitcoin moved above $106,000 at the beginning of this week in a powerful break, with its sights set on a potential breakout above its all-time high of $111,980.

With whales and retail investors on board, Bitcoin’s on-chain metrics indicate little selling pressure. Binance inflows are at an all-time low for this cycle, which indicates long-term holders refusing to budge.

Final Thoughts

While Bitcoin sets the tone and shows optimism, the remainder of the altcoins are yet to find direction. Investors and traders must watch respective key resistance levels, especially for XRP, Solana, and HYPE.

Such tokens may provide breakout plays in the short term. ADA and BNB, in the meantime, appear to be consolidating or weakening under bear pressure with little bullish upside unless overall sentiment improves.

FAQs

1. Why isn’t Bitcoin reaching new highs yet?
   It’s being resisted around $112K, and investors are waiting for solid signs before investing.
2. What’s unique about HYPE now?
   HYPE went through major resistance and is trending strongly bullish, unlike most altcoins.
3. Is it safe to buy XRP and Cardano now?
   XRP is stable in its range, but Cardano is weak and can drop if it goes below $0.60.

Glossary

1. RSI (Relative Strength Index):
   An indicator that indicates whether a coin is overbought or oversold.
2. Support/Resistance:
   Support = price floor. Resistance = price ceiling.
3. EMA (Exponential Moving Average):
   A line that follows price trends, emphasizing more recent moves.

Sources

CoinMarketCap

Coindesk

TradingView