XRP, Cardano (ADA), and BONK almost exhausting retracements with bullish signals building up to support the next top crypto to buy rally.
Published 5 hours ago
The crypto market remains in a holding pattern, neither charging bullishly forward nor diving into bearish despair. Investors might have taken Wednesday’s price bump as a welcome change, but it lacked the oomph to reignite enthusiasm for top crypto to buy contenders like XRP, Cardano, and BONK.
Bitcoin hangs precariously around $40,000 as we head into the start of the US session. If the bulls want to secure this shaky foothold on Thursday and rebuild investor confidence in a potential comeback, they’ll need to show some serious conviction.
However, before entering new positions, investors must wait for the tense situation between bulls and bears to resolve and determine where the market would be heading next.
Select best crypto to buy like XRP, ADA, and BONK are among the few tokens that might work exceptionally well with a dollar-cost averaging (DCA strategy to capitalize on the anticipated recovery in the coming weeks.
Identifying key entry positions in XRP
After a brief rebound on Wednesday above $0.52, XRP price has eased into the downtrend retesting support at $0.51. With the Money Flow Index (RSI) affirming the bearish grip, cross-border money remittance will be at risk of sliding below $0.5.
Investors may want to take advantage of the price drop to buy the dip and make the most of the next rally above $1.
However, based not the current technical structure patience is essential. Until XRP shows signs of a trend reversal by bouncing off support at $0.5, it would be prudent to avoid opening new long positions.
A DCA strategy would be the best alternative to investing in such a bearish market. Averaging investment over different price ranges allows for risk management while ensuring no opportunities to buy the dip are missed.
Is Cardano (ADA) ready to bounce back?
Cardano holders are back on the drawing board to deliberate their next steps in the wake of a sizeable correction from ADA’s December peak of $0.67. The decline followed the confines of a descending channel, whose lower boundary area plays a critical role in ensuring the downside is protected and losses stopped to give way for a trend reversal.
If the channel support holds in the coming sessions, buyers are likely to reconsider their position. Increased buying of the dip activities would build the momentum to support a new breakout.
With a break above the channel, Cardano price might quickly close the gap to $1 and increase the probability of an extended bull run.
However, losing the channel demand area might add pain to the wound, with the 200 EMA expected to serve as the next support at $0.415.
Evaluating Bonk price double-bottom support
Bonk, the first meme coin to launch on the Solana blockchain, embarked on giving back most of the gains accrued in Q4, from highs around $0.000035 to its current $0.0000105.
The downtrend can be attributed to standard profit-taking actives following a massive rally but also to the negative forces in the crypto market this January.
Bonk price sits on top of the green band support — an area that has been important to the meme coin since mid-December. Having tested this support at least three times, there are two possible outcomes.
Respecting the green support would give the bulls another chance to push for the next breakout above the yellow range high. However, the more support bombarded the higher the chances of weakening it and this might result in a bigger breakdown to $0.000005 before Bonk regains traction.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
