Is the rally on Ethereum (ETH), BNB, Bitcoin and others over? Crypto Market Review, January 20

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Arman Shirinyan

Markets are slowly moving lower or entering consolidation channels, which could be the first sign of a longer-term reversal

The explosive rally that originated earlier this month is nearing its logical conclusion as the majority of digital assets have reversed from their local highs. However, there are a few exceptions like XRP that remain in the uptrend.

What’s coming to the market next week?

With the bull market slowing down, we could witness a much stronger and deeper correction in popular assets like Ethereum, BNB or even Bitcoin. While sentiment-based indicators show investors are no longer panicking, no fundamental factors that would push the cryptocurrency market have emerged recently.

Source: Trading View

Open interest in most cryptocurrency derivatives trading platforms has increased, which can be seen as an indication of recovering liquidity and depth. Unfortunately, most of the recurring volume in the market could be related to bears trying to gain advantage over bullish retail investors.

The majority of cryptocurrencies, including Bitcoin, are still trading in the uptrend and have yet to completely lose their footing in the market. However, most of these assets have entered local consolidation channels, which may become the basis for a downward reversal that will only worsen the long-term state of the market.

Shiba Inu’s Quick Turnaround

The celebration of Shiba Inu’s unexpected rally and escape didn’t last long. On Wednesday the 18th, SHIB broke through the 200-day moving average explosively, leaving behind most of the bears who have been building up short positions at the aforementioned level.

However, the breakout that put SHIB at its 75-day high quickly faded after the whales provided noticeable selling pressure, knocking down the premature ladder of support levels that weren’t ready. for an influx of sales.

Unfortunately, Shiba Inu has yet to find the power to rebound strongly and remains at the same price level as three days ago. Once the whales have unloaded a huge amount of accumulated SHIB tokens, the bulls are no longer enthusiastic about supporting the meme token on its way, which is why they are unlikely to see any volatile movements at rising in the foreseeable future.

XRP Remains Unwavering

Despite the announcement of Genesis bankruptcy and the reversal of the market, XRP does not seem to lose the momentum it gained previously, as it has been in the local uptrend since early January.

At press time, XRP is trading above the 50-day moving average, which can be seen as a reversal zone for the asset. The Relative Strength Index is also too far from the “overbought” zone for XRP, which most likely means that the asset has enough room to grow in the coming weeks or even months.

Unfortunately, not much has happened around the ecosystem of XRP despite numerous statements about the fundamental importance of the network.

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