According to a tweet from the cryptocurrency monitoring programme 100eyes Crypto Scanner, Ethereum (ETH) and XRP, the second and sixth largest cryptocurrencies by market size, respectively, are getting close to horizontal resistance.
The phrase “horizontal resistance” refers to a price level that a cryptocurrency or other asset finds it difficult to go past. It frequently denotes a price level where a surge in supply (sell orders) is potent enough to stop price growth.
The second-largest cryptocurrency, Ethereum (ETH), sports a $229 billion market valuation and a 4% weekly rise. According to statistics from CoinGecko, XRP, renowned for its association with Ripple, has a market worth of over $27 billion but significantly surpasses both Bitcoin (BTC) and ETH with a 12.8% rise over the previous seven days. At the time of writing, the price of Ethereum is $1,909.17, while the price of XRP is $0.532.
These numbers indicate bullish momentum, but the approaching horizontal resistance levels may soon put these rising trends to the test.
Horizontal resistance levels in technical analysis frequently serve as traders’ psychological price barriers. At these instances, traders frequently elect to liquidate their positions in order to profit from price peaks, which generally reflects a significant amount of selling pressure.
These resistance levels can have a variety of effects, including a price reversal or consolidation.
