There was high tension on Jan. 10 as the United States Securities and Exchange Commission was expected to deliver a decision on spot Bitcoin exchange-traded fund applications which it later approved 11 of the 14 applications before it.
Following the decision, crypto prices continue to whipsaw with only Ethereum and a handful of other top cap cryptocurrencies trading in the green.
At the time of writing, the market appears to be turning bullish with the global crypto capitalization jumping 1.65% to $1.75 trillion. Bitcoin is back above $46,000 after rising 0.65% over the last 14 hours.
Altcoins are also turning up with the top pack being led by Avalanche (AVAX) and XRP which have climbed 12% and 5.4% over the last 24 hours.
As market participants continue to digest the implications of a spot BTC ETF and trading begins, crypto prices are expected to continue their upward trend.
Let’s analyse the price action of Avalanche and XRP to find out the key levels to watch in the near term.
AVAX price analysis
Avalanche dropped below the neckline of the head-and-shoulders pattern on Jan. 5, indicating that the bears are trying to defend the $38 level aggressively.
If the selling continues, AVAX pair could drop to the 50-day exponential moving average (EMA) at $34 and later to $31 support floor. Note that this is an important level to watch out for.
If the $31 support gives in, the selling could intensify, and the AVAX/USD may descend toward the pattern target of $27, embraced by the 100-day EMA.
AVAX/USD daily chart
Conversely, if the price rebounds off the $31 level with force, it will suggest that the bulls are vigorously protecting this level.
That could keep the pair between $31 and $38 for some time. A break and close above $38 will indicate that the bears may be losing their grip. The AVAX price may then rise toward the head’s tip at $50, marking a 31% uptick from the current price.
XRP price analysis
At the time of writing, XRP was trading with a bearish bias at $0.5 and was fighting immediate resistance from the 50-day EMA at $0.6065.
All the major moving averages are sloping down, and the RSI is below 50, indicating that bears have the upper hand.
If the price sinks below $0.57, the selling could pick up, and the XRP/USDT pair may plummet to seek solace from the $0.50 psychological level.
XRP/USD daily chart
XRP/USD daily chart
On the other hand, the bulls will have to propel the price above the 50-day EMA to indicate strength. The short-term trend could tilt in favor of the buyers after the price rises above the downtrend line at $0.615. The pair may climb to $0.67 and subsequently to $0.73.
Such a move would mark a 23% ascent from the current price.