Cardano ($ADA) is up more than 10% on Friday, while Ripple ($XRP) continues to ride high at $2.40. Should you be buying them? An honest evaluation of two of the strongest community altcoins.
When one looks at the fundamentals for $ADA and $XRP, one of the biggest plusses for the teams behind them, as well as investors and traders looking to buy, is the massive size and fervent support of their communities. However, is this enough to push these cryptocurrencies higher?
$ADA breaks out – up 12% on Friday
Source: TradingView
Following a long period of downward price action throughout almost the entirety of 2024, the price of $ADA (ADA/USDT) experienced a large bounce from the support at $0.00000470, which took it 193% higher in the period of just a month.
A correction followed, where the price retraced a healthy 40%. Over the last three days, the price has broken out again and is currently heading higher, up 12% so far on Friday.
Is $ADA a zombie?
Source: TradingView
However, it’s in the weekly time frame that prospective investors ought to be looking. If this was a stock company, the term ‘zombie company’ might spring to mind. When seen on this scale, the recent bounce did not even make a higher high in the series of lower highs and lows that have been evidenced since 2021.
If one looks at the Stochastic RSI (momentum indicator), all the short term time frames have topped out, and the weekly and 2-weekly are both coming down.
Potential short time frame rejection for $XRP
Source: TradingView
$XRP (XRP/USDT) in the short-term chart looks as though it might be about to be rejected from the descending trendline that began at the last local high. As can be seen by the Fibonacci levels, the descending trendline also coincides with the 0.618 level, which is a standard level for a retracement to take place.
Limited upside for $XRP?
Source: TradingView
The weekly view for $XRP shows a hugely better picture than that for $ADA. However, the vast bulk of market structure is at much lower levels, and $XRP is spiking in the bull markets instead of climbing steadily, which is not a healthy look.
The price looks as though it might have topped out now, with candle bodies closing just at the 0.786 Fibonacci. That said, the 0.618 has been successfully retested. If Bitcoin and the rest of the crypto market continue to go up, then why not $XRP?
Much better buys out there
In summary, $ADA looks to be in a nasty downtrend. Only a higher high above $0.00001570 could start a turn around. On the other hand, $XRP is still riding high. That said, is it really worth buying given that upside is probably now a lot more limited? There are much better options in the crypto market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
