Bear Market Rally? XRP and Cardano Could Hit $2.50 and $0.750 Soon

Other cryptocurrencies have gone through similar paths as supportive comments coming out of the White House this week regarding its stance on tariffs and its willingness to negotiate a middle ground with China appeased the market’s concerns momentarily.

Meanwhile, President Donald Trump dialed down his aggressive rhetoric toward the head of the Federal Reserve, Jerome Powell, after he called him a “major loser” for refusing to lower interest rates when the U.S. economy needs it the most – in his view at least.

Market participants have moved from Extreme Fear to a Neutral outlook for the crypto market according to the latest readings from the Fear and Greed Index.

Is this the end of the bear market for ADA and XRP? Or is this just another bear market rally that will result in lower lows for both tokens?

Technical indicators show that ADA is still at risk of a reversal as it seems poised to retest a key trend line support it broke recently while XRP’s rally has been much weaker compared to other tokens.

XRP Hovers Near Key Support

XRP’s break above its trend line resistance this week has pushed the token to its highest level in nearly a month at $2.3.

However, XRP has not yet climbed above key volume areas, especially the $2.4 which is currently its point of control (POC).

When prices are below the POC, it means that bears are still in control of the price action. The fact that the token has posted single-digit gains in the past week while others have been booking returns of 10% or much higher is an indication that the market’s interest in XRP is much lower than it was a few months ago.

The project has experienced some positive developments in its fundamentals including the decision from the U.S. Securities and Exchange Commission (SEC) to drop its case against Ripple.

Meanwhile, its stablecoin RLUSD has seen its market cap grow by more than 500% since it was launched as it has secured key listings and partnerships along the way.

Nevertheless, none of these catalysts have resulted in a significant climb to the $3 level, which is a key psychological resistance and a major target for XRP bulls.

Moving forward, the $2 level seems to be the most relevant support to watch if XRP experiences a pullback at this point. Momentum indicators favor a bullish outlook but have been a bit stalled as the Relative Strength Index (RSI) is hovering slightly above the signal line.

A bullish target in the near term would be the $2.7 level but the price will have to first clear the $2.4 area as this is a high-volume threshold that bulls have not yet captured and where XRP could encounter significant selling pressure if bearish sentiment persists.

ADA Hits Critical Resistance

Cardano has been recovering in the past few days after bouncing off the $0.510 support, which was our most recent bearish target a few weeks ago.

Plenty of order blocks remain in that area so the odds that the market will revisit those lows at some points are quite high.

For now, momentum is bullish as the price broke above the 21-day EMA with above-average volumes.

The price has hit a critical resistance after touching its POC, so bulls are not out of the woods yet unless they can capture this key area.

Next up, ADA will hit its former trend line support which has now turned into resistance. These are classic moves of a bear market rally where traders push the price higher to retest former resistances to either confirm or invalidate a bearish outlook.

Upside potential at this point is limited and downside risk is high as the macro backdrop remains quite volatile and unfavorable in the general picture.

Traders should be cautious as ADA approaches these key levels as a rejection of any of them could mean that the price will plunge and retest the $0.510 in a blink.