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As per 100eyes Crypto Scanner, a trusted crypto analysis tool, Ethereum‘s ETH and Ripple’s XRP are swiftly closing in on what are considered critical horizontal resistance levels. As the second and sixth largest cryptocurrencies by market capitalization, this development has implications for potential market movements.
Investors Eye Both ETH and XRP
Both Ethereum and Ripple have been in the spotlight for investors. The term “horizontal resistance” in technical analysis denotes a price level that a cryptocurrency or asset struggles to surpass. This price point usually marks the strength of supply (sell orders) hindering the price from moving further up.
Ethereum (ETH), the second-largest cryptocurrency and the largest altcoin, has a market cap of about $229 billion and has seen a weekly rise of 3.80%. Ripple’s XRP, issued by the US-based blockchain company, boasts a market cap of roughly $27 billion. However, as per CoinMarketCap data, with a weekly increase of 11.21%, it outperforms both Bitcoin (BTC) and ETH. At the time of writing, ETH and XRP are trading at approximately $1902 and $0.5255 respectively.
Horizontal Resistance Levels in Technical Analysis
For ETH, the horizontal resistance level stands between $1900 and $1920, while for XRP, it falls between $0.52 and $0.53. These price ranges reflect an increasing bullish momentum, and the power of this upward movement will be tested with the rapidly approaching horizontal resistance levels.
In technical analysis, horizontal resistance levels often serve as psychological price barriers for investors. They typically mirror the high selling pressure that arises when investors decide to sell off their assets to capitalize on price peaks.
However, reaching these strong resistance levels doesn’t always result in a decline. Prices may demonstrate a tendency to surpass the horizontal resistance level, potentially leading to accumulation above that level.
