XRP Price Assessment: Potential Drop of XRP to $1.6 Due to Absence of Bullish Trends
Cryptocurrency Market: XRP Struggles as Bitcoin and Ethereum Recover
In a reviving crypto market, XRP stays in a corrective phase, lagging behind Bitcoin and Ethereum's modest recovery. While the big players held vital levels, Ripple's token shows continued weakness.
Both the USDT and BTC pairs have breached key support trendlines, hinting at potential downside unless the broader sentiment improves.
Revisiting the USDT Pair
The XRP/USDT pair has slipped below its rising wedge formation following a failed attempt to reclaim the $2.80 resistance zone. This decline occurred with rising selling pressure, sending the price towards the next demand zone around $2.
This crucial level corresponds to the midline of the larger descending channel. If the price can't rebound above the 100-day and 200-day moving averages around $2.40, the bearish outlook persists.
Moreover, the asset currently consolidates just beneath the wedge's lower boundary, showing no evident bullish momentum. The RSI hovers around 40, signaling weakening bullish momentum. If sellers retain control, another drop toward the $1.60 support range seems likely, as this zone offers prior accumulation liquidity.
Reassessing the BTC Pair
In the BTC pair, XRP has slumped below the vital 2,100 SAT support area with weak momentum. A possible breakdown from the falling wedge pattern, combined with the earlier rejection from both the 100-day and 200-day moving averages located around the 2,500 SAT mark, suggests sellers still have an upper hand. Furthermore, there's no bullish divergence on the RSI, which has dipped below 40, reflecting ongoing weakness.
The upcoming zone of interest lies around the 1,900-1,700 SAT region. This level denotes the range of a prior imbalance (fair value gap), where price reactions might occur. If XRP can't find support here, it could slip lower towards 1,100 SAT, especially if Bitcoin's dominance continues to expand.
Curious Insights
From market observations, Ethereum has displayed a resilient rally, although it faces resistance around the $2,800 mark. Despite this, Ethereum remained within a tight trading range, potentially forming a local top. The RSI near 62 indicates some loss of momentum, hinting at a bearish divergence. Ethereum's market structure somewhat resembles an ascending channel or distribution range, which could portray a bearish signal.
When XRP's performance compared to Bitcoin and Ethereum is evaluated, there might be several factors contributing to XRP's relative weakness. These factors could include:
- Market Sentiment: XRP might be experiencing weaker sentiment compared to Bitcoin and Ethereum, possibly due to regulatory uncertainties or fewer adoption milestones.
- Technical Analysis: If XRP's technical indicators show weakness, such as failing to break key resistance levels or exhibiting a bearish divergence in indicators like the RSI, this could contribute to XRP's underperformance.
- Lack of Catalysts: Unlike Ethereum, which has experienced significant network updates and upgrades, XRP might not have similar catalysts driving its price upward.
- Despite Bitcoin's and Ethereum's recovery, XRP remains in a correction phase, showing continued weakness in the cryptocurrency market.
- The XRP/USDT pair has slipped below its rising wedge formation and is now consolidating near the midline of a larger descending channel, signaling weakening bullish momentum.
- In the BTC pair, XRP has slipped below the vital 2,100 SAT support and is showing no evident bullish momentum, while Ethereum displays a resilient rally, although facing resistance and potentially forming a local top.
- The relative weakness of XRP compared to Bitcoin and Ethereum could be due to weaker market sentiment, technical analysis showing weakness, or a lack of catalysts for significant price increases, such as significant network updates and upgrades.
