XRP and DOGE price prediction: Dogecoin attempts recovery as XRP remains undecided
The crypto market’s crash on Jan.12 suggested that the market participants were selling the news on the Jan. 10 approval of the long-awaited decision on the spot Bitcoin ETF applications by the United States Securities and Exchange Commission (SEC).
Bitcoin (BTC) led the cryptocurrency markets lower on Jan. 12 dropping as much as 10% to send a swing low around at the $41,650 area. The largest altcoin by market capitalization lost 6% of its value before finding solace from the $2,400 support zone.
Other top non-stablecoin cryptos also felt the brunt of the crypto market crash with the payments token XRP dropping as much as 6.7% toward $0.5635. The popular meme coin Dogecoin (DOGE) lost 9.5% to $0.0813 within just a few hours.
Although the correction appears to be cooling down the bullish sentiment in the short term, it does not alter the prevailing trend. The market sentiment remains positive as the Crypto Fear and Greed Index rises back into the “greed” zone.
Crypto fear and greed index
What are the key levels to watch in XRP and Dogecoin price over the next few days?
XRP price analysis
Attempts by the buyers to start a recovery in XRP were frustrated by resistance from the downtrend line on Jan. 11, suggesting that the bears remain in control.
The downsloping 50-day exponential moving average (EMA) ($0.6008) and the position of the relative strength index (RSI) below 43 suggest that the path of least resistance is to the downside.
If the current selling is accelerated, XRP could plummet below the $0.5719 support, embraced by the 200-day EMA. That will clear the path for a drop to $0.50 and then to $0.46.
On the upside, if buyers want to prevent the decline, they will have to push the price of the cross border payments token above the downtrend line.
Such a move would invalidate the bearish pattern and start a relief rally to $0.67 and eventually to $0.7373. This would represent a 24% uptick from the current price.
Dogecoin price prediction
DOGE has been coiling below the 100-day EMA ($0.08) for the past few days, but the bears have failed to sink the price to $0.075.
The downfacing moving averages and the value of the RSI at 42 in the negative territory indicate an advantage to sellers. If the price turns down from the current level or the 100-day EMA, the bears will again try to sink the DOGE/USDT pair to $0.075, where the 200-day EMA currently sits.
DOGE/USD daily chart
Contrary to this assumption, if the price breaks above the 100-day EMA, it will suggest that the bears are losing their grip.
Buyers will then try to propel the price to the stiff overhead resistance level at $0.085, embraced by both the 50-day EMA and the upper boundary of the falling channel.