Crypto News Today: Cardano and XRP Seem Poised to Recover but How High Can They Go?

During this period, XRP (XRP) and Solana (SOL) have emerged as the biggest winners within the top 10 with 7-day gains of 5.4% and 18.2% respectively while Bitcoin (BTC) and Cardano (ADA) have experienced milder increases of 3.8% and 0.2% respectively.

Yesterday, the head of the Federal Reserve, Jerome Powell, emphasized that it was “highly likely” that President Trump’s would result in higher inflation down the road.

He also commented that the Fed could struggle to accomplish its dual mandate of fostering economic growth and keeping inflation below its target of 2% as monetary policy decisions alone will help one side of the mandate only in this scenario.

As the macroeconomic backdrop remains highly volatile and mostly unfavorable, let’s have a look at the XRP and Cardano charts to get a sense of where the two tokens could be heading next.

ADA Bulls Take Control

Cardano (ADA) bounced strongly off the $0.510 level after Trump backpedaled on his decision to impose high tariffs.

As a result, a double-bottom has formed at this level and the price action has reacted positively thus far as momentum indicators have jumped to positive territory.

Bulls also managed to recapture another key support area they had lost at $0.570 and they may now be eyeing a retest of ADA’s former trend line support.

The Relative Strength Index (RSI) sent a buy signal on April 9 as it moved above its 14-day SMA, which typically indicates that the trend has reversed.

However, the SMA’s slope was neutral, hence this bullish breakout is still not that reliable. Meanwhile, the MACD’s histogram had been trending lower until today as the Asian session started with a positive tone.

The most critical area that ADA must overcome to flip its downtrend seems to be the 21-day EMA as the price action has rejected multiple attempts to break above that line.

Trading against the trend does not seem like a good idea as everything points to an upcoming retest of the $0.570 support, meaning a downside risk of around 8%.

Meanwhile, a closer look at ADA’s volume profile shows that there has been strong selling pressure at the $0.660 level, right above the point of control (POC). As the price nears the $0.660 level, short-sellers would have the upper hand based on historical patterns as the price could drop again to the $0.500 level if a move above the 21D EMA is rejected again.

XRP Could Drop to $1.60

XRP has been on a clear downtrend since its January highs and, although it has attempted to break above the 21D EMA multiple times, most of these moves have been greeted with strong selling pressures that have pushed the token to lower lows.

XRP bounced off the $1.60 level recently and the price has been recovering since then. However, it has once again encountered resistance at the 21D EMA and the market has rapidly sold off every attempt to push XRP above this area.

Looking at the hourly chart, we can see that we can see two relevant price zones (red rectangle) where selling pressure has been at its highest point and one area from which the price has bounced in past sessions (green rectangle).

The price is currently nearing the $2.13 – $2.11 area during the American session and this could offer traders a chance to enter a short position if a move above is once again rejected.

This is a value area based on XRP’s volume profile, meaning that market participants see this as a relevant price zone.