Simply put
- Once again, Donald Trump has issued a pro-cryptocurrency executive order, which seems to have a positive impact.
- Bitcoin’s price saw a slight increase, while altcoins like XRP, Ethereum, and Dogecoin surged significantly.
- Curious about what comes next? Let’s check the charts.
The cryptocurrency market has bounced back this week. Altcoins like Ethereum, XRP, and Dogecoin are leading the way with strong gains.
Meanwhile, Bitcoin is mostly steady, registering a modest increase of 1%—about $116,000—over the last week. Overall, the cryptocurrency market is eyeing that elusive $4 trillion milestone again, with altcoins outperforming Bitcoin in terms of profit.
What’s fueling this new wave of optimism? Well, another exciting executive move, of course.
President Trump’s latest executive order allows alternative assets, including cryptocurrencies, to be included in his 401(k) retirement accounts, fostering renewed trust in digital assets.
The charts are signaling bullish trends once more. The Secretary of Labor is also being directed to clarify the stance on alternative assets, which could provide the necessary catalysts for these technical setups to accumulate momentum. As traditional markets fluctuate and commodities feel pressure from trade issues, cryptocurrencies may see an influx as investors look to diversify.
So, with all this in mind, let’s take a deeper look at the weekly figures.
Ethereum (ETH): Breaking Through Resistance
Ethereum enthusiasts are likely feeling optimistic right now.
ETH appears to be showing a strong setup, trading above $4,000 for the first time in eight months, outpacing other major cryptocurrencies. It has jumped 13% since last week, signaling a robust start.
Ethereum’s Mean Directional Index (ADX) currently sits at 23, nearing the critical 25 mark. This index gauges the intensity of a trend, with readings above 25 indicating a strong directional movement. Traders keep a close eye on this level, as a rise here might confirm a more sustained upward trend.
The exponential moving averages—used to analyze price movements over time—also paint a bullish picture. The 50-week EMA offers solid support below the current price, and the 200-week EMA is even lower. This suggests that buying pressure remains, typically signaling a continued trend upwards.
Furthermore, the relative strength index (RSI) for ETH is at 68, getting close to the high territory above 70, but it’s not quite there yet. Historically, during significant bull runs, Ethereum has been able to maintain its RSI readings between 65 and 75.
Another indicator, the squeeze momentum, shows that volatility has been released from a previous tight phase. This implies there’s room for further price movements, as the market hasn’t shown signs of stabilizing yet.
Looking ahead, all indicators suggest a continued bullish recovery. Prices have broken through bullish resistance levels, which now acts as a support zone for potential further gains.
Recent forecasts show that many traders expect ETH to hit $5,000 this year, which represents a 30% increase from current levels.
Key Level:
- Immediate Support: $3,600
- Strong Support: $3,200
- Immediate Resistance: $4,103
- Strong Resistance: $4,400
XRP: Establishing Key Support
XRP enthusiasts are in high spirits today, especially after recent positive developments.
XRP is currently trading at $3.23, staying above the important $3 mark, with a notable 9.79% gain this week.
The ADX for XRP has bounced back to 21, indicating a potential movement transition. Traders often view this as a preliminary phase before a significant breakout.
Considering the substantial price spikes for XRP in late 2024 and early 2025, this transitional phase may help the market stabilize.
The technical setup—showing both 50 and 200 EMA favorably—suggests that traders have a sustained bullish outlook. As the gap widens between these averages, traders are likely anticipating continued upward momentum.
The RSI is positioned at 63, indicating that there’s room for XRP to grow before any significant pullback occurs.
Key Level:
- Immediate support: $3
- Strong support: $2.69
- Immediate resistance: $3.372
- Strong resistance: $3.67
Dogecoin (Doge): In a Neutral Range
Dogecoin supporters have some positive news, but they might want to temper their enthusiasm.
Doge has found itself in a neutral technical setup around $0.2216, following a strong price recovery, recording an 11.5% rise over the past week.
The current ADX reading of 16 suggests there’s no clear trend, which tends to lead to market indecision. While Doge’s price actions suggest it’s recovering from recent lows, the movements may appear more like a weakening of a bearish trend rather than a solid bullish one.
Technical indicators suggest that Dogecoin is caught between key averages, indicating a potential for explosive movements once a trigger arises.
The RSI is firmly at 52, suggesting a balanced trading pressure scenario as the market remains stable.
From a price pattern perspective, Dogecoin is forming a double bottom pattern, which adds to its potential for recovery, especially if the support level holds.
Key Level:
- Immediate Support: $0.1950
- Immediate Resistance: $0.2656
- Strong Resistance: $0.3077
Disclaimer
The views and opinions herein are for informational purposes only and do not constitute financial or investment advice.
