XRP, DOGE, LTC, and ADA prices remain under pressure, while MORPHO is testing its 200-day EMA.
Coinbase announced on Wednesday that Ripple (XRP), Dogecoin (DOGE), Litecoin (LTC), and Cardano (ADA) are eligible collateral for its crypto-backed loans. The feature will be powered by the Decentralized Finance (DeFi) protocol Morpho on Coinbase’s native Base blockchain ecosystem. Despite the announcement, retail demand for XRP, DOGE, LTC, and ADA remains significantly low, while the DeFi token Morpho is performing relatively better. The technical outlook for Ripple, Dogecoin, Litecoin, and Cardano highlights downside risk, while Morpho faces downside pressure from its 200-day Exponential Moving Average (EMA) at $1.50.
Coinbase announced an expansion of its crypto-backed loan features on Wednesday, from Bitcoin (BTC) and Ethereum (ETH), allowing other altcoins, including Ripple, Dogecoin, Cardano, and Litecoin, to serve as collateral for loans of up to $100,000 in USDC. However, these altcoins receive lower credit than the $500,000 available for BTC and ETH. The loans are backed by Morpho, a DeFi protocol running on the Base chain.
The feature now allows users to access additional liquidity without selling their crypto assets and helps them avoid capital gains taxes when they sell. The interest rate varies by asset and requires maintaining a loan-to-value of up to 86% to avoid a liquidation penalty.
Despite the community’s positive response to the news, altcoins remain under pressure, while the provider DeFi token, MORPHO, struggles to hold above the 200-day EMA.
Ripple is trading around $1.42 at press time on Thursday, holding ground after losing over 3% the previous day. XRP is extending its downside move after a surge in selling pressure around $1.67 on Sunday. The short-term pullback indicates the path of least resistance is toward the S1 pivot point at $1.29.
The Relative Strength Index (RSI) is at 39 on the daily chart, maintaining a sideways trend above the oversold region. Meanwhile, the Moving Average Convergence/Divergence (MACD) hovers above the signal line as positive histogram bars contract, risking a bearish crossover.
On the flip side, a potential rebound above the $1.50 could test the $1.67 resistance near the 50-day EMA at $1.70.
Dogecoin is trading below the $0.10000 psychological level at the time of writing on Thursday, testing a crucial support level at $0.09830 marked by the February 6 closing price. A decisive close below this level could test the February 11 low at $0.08790.
The meme coin is trading significantly below the 50-day and 200-day EMAs, reaffirming the bearish bias.
The RSI is at 42 on the daily chart, edging lower from the midline, with further downside room before reaching the oversold zone. At the same time, the MACD positive histogram bars are contracting, increasing the chances of a bearish crossover of the moving averages.
Still, a rebound from the crucial support at $0.09830 could extend recovery to the 50-day EMA at $0.11531.
Cardano remains in survival mode, as previously reported by FXStreet. At the time of writing, ADA is trading near $0.2750 on Thursday, with a minor intraday recovery of almost 1%.
The short-term price action indicates a reversal from the $0.3000 psychological resistance, raising the risk of a decline toward the S1 pivot point at $0.2289.
Similar to Dogecoin, the technical indicators RSI and MACD signal a bearish bias on the daily chart.
To reinstate an upward trend, Cardano should surpass the February 3 high at $0.3050, which could open the door to the 50-day EMA at $0.3271, followed by a higher target at the R1 pivot point at $0.3978.
Litecoin trades for the third consecutive day in the red, with bears targeting the $50.00 psychological support. At the time of writing, Litecoin is holding above $53.00 on Thursday, totaling for a weekly loss of roughly 4%.
The steady decline in the 50-day and 200-day EMAs at $64.44 and $83.12, respectively, confirms the long-term bearish bias. Consistent with downside bias, the technical indicators on the daily chart suggest that sellers are tightening their grip on Litecoin. The RSI is at 33, trending toward the oversold zone, while the MACD is flashing a bearish crossover possibility, which would signal a return to bearish momentum.
The S1 pivot point at $48.06 serves as the initial crucial support level, followed by the February 6 low at $45.07.
However, if Litecoin reverses above $56.51, it could extend the recovery to the 50-day EMA at $64.44, near a resistance trend line connecting the February, November 9, and January 6 highs.
Morpho extends its decline by 1% at press time on Thursday, following a 3% drop on the previous day. The 200-day EMA at $1.50 remains a key resistance level that capped the 10% surge on Tuesday, alongside a trendline connecting the August 22 and November 13 highs on the daily logarithmic chart.
The R1 pivot point at $1.36 serves as resistance-turned-support for the DeFi token.
The RSI at 61 holds a recovery towards the overbought zone as buying pressure increases. Meanwhile, the MACD and signal lines are trending upward, indicating steady bullish momentum.
A decisive close above the 200-day EMA at $1.50 would confirm the resistance breakout and flag the R2 and R3 pivot points at $1.59 and $1.74 as potential upside targets.
