XRP Soars 20% Towards $2, But Bitcoin Faces Potential Reversal – What’s Next for PEPE?

XRP's Impressive Surge

The price of XRP has surged by 20% to $1.166, continuing its remarkable rally. According to Elliott Wave Theory, this movement aligns with the bullish pattern's pivotal third wave, often regarded as the most powerful phase of an upward trend. This recent spike places XRP in a favorable position to reach important price targets soon.

After breaking above $1.00 to initiate the first wave, XRP underwent a consolidation phase around $1.30, forming the second wave. With robust momentum and rising trading volumes, XRP appears to be in its third wave. Historically, this wave tends to elevate prices beyond previous movements, attracting more buyers and fostering optimism.

The next key resistance level is $1.80, and if surpassed, XRP could potentially hit the $2.00 mark, a crucial psychological threshold and all-time high. Long-term targets could range from $2 to $20 if this upward trajectory continues.

Bitcoin's Unsettling Market Signals

In contrast, Bitcoin is showing signs of a potential reversal, as it records a lower high on its daily chart. This is concerning for bullish traders, as lower highs often indicate diminishing momentum and may foreshadow a more substantial correction.

Currently, Bitcoin is trading at about $97,500, just below the psychological $100,000 level. To reignite bullish momentum, BTC must overcome immediate resistance at $98,000. Key support levels are at $88,000 and $78,000; a breakdown below $88,000 could lead to a deeper retracement.

The Relative Strength Index (RSI) is nearing overbought levels, suggesting Bitcoin may need some cooling off before making significant moves. Additionally, declining trading volumes could signal short-term weakness.

PEPE's Critical Moment

Pepe (PEPE) is approaching a pivotal point as its price hovers around the 21-day EMA, a crucial support level that has supported its recent upward trend. The cryptocurrency is currently experiencing a short-term downtrend, reflected in its consolidation under a descending trendline.

This situation indicates that a breakout is likely. The recent recovery from the 21 EMA suggests its importance as a support zone. A sustained position above this level could lead to a bullish reversal, while a break below it may trigger a more severe correction, with support levels at $0.00001746 and $0.00001350.

The decline in trading volume is notable, often preceding significant price movements as traders await a clear direction. PEPE is expected to experience increased volatility and potential breakout once volume spikes. Maintaining its position above the 21 EMA and confirming a reversal by breaking the descending trendline with high volume is essential for a bullish breakout.