There are market fissures and Ripple, and most crypto assets just slid into the crack. Bulls are painstakingly struggling to wriggle out.
If anything, double-digit losses are the order of the day.
At the time of writing, the XRP/USD price is down 16 percent on the last day alone, breaking below critical support levels.
Losses, unfortunately, are not versus the resurgent greenback alone.
XRP is down versus an equally battered BTC, sliding against ETH in the same period of trading.
Ripple Market Performance
Reading from events from the weekly chart, the draw-down appears to be getting started.
For instance, there has been confirmation of losses tracing back to mid-May 2021.
At the same time, prices, for the first time in several months, are convincingly trading below the middle BB.
This flexible support line has been reliable enough, offering guidance for aggressive XRP/USD bulls.
Following the high-volume break below the middle BB and the alignment of bear bars below the lower BB, the odds of more losses in days ahead appear elevated.
Presently, XRP prices are down over 60 percent from 2021 peaks.
If losses continue at this pace, the XRP price could quickly sink to mid-2020 levels of around $0.40 in a retest, wiping out gains made predominantly in the first quarter of the year.
Still, fundamental factors may revive demand, stymie losses and reverse the fortune of XRP holders in the medium term.
90% Corrections in Altcoins including XRP/USD are Normal
As one trader on YouTube points out, deep 90 percent corrections in the crypto market are normal and the order of the day.
In his analysis, Blockchain Backer says he has seen similar moves in the past, which is no surprise.
Often such discouraging dips as observed in the XRP/USD price chart precede sharp surges, relieving losses.
Therefore, amid the despair, the best course of action, he adds, is to HODL.
Reading from the XRP/USD weekly price chart, for instance, prices are already down over 60 percent.
The same move was observed in the 2018 bear market when the prices of most crypto assets shaved a ballpark 85 percent of 2017 peaks.
XRP/USD Short Term Trajectory highly reliant on BTC
On Twitter, a user going by the handle @rafaelken1989, thinks everything is good for XRP at the moment.
Even so, the short-term trend for XRP and altcoins depend on BTC price movement.
— Rafael Ken Aguilar (@rafaelken1989) June 22, 2021
Although there might be a dead cat bounce, relieving buyers, the path of least resistance is southwards. Most technical indicators, especially in the monthly chart, points to sellers as XRP/USD prices correct.
Earlier on, Brad Garlinghouse said that for XRP to thrive, it must decouple from Bitcoin. There are periods when this happens.
However, considering the increasing correlations, XRP’s comparatively low liquidity, and BTC evolution as a store-of-value primarily acting as a base currency in most exchanges, Bitcoin’s significance can’t be understated.
XRP/USD has Potential to the Upside
On Trading View, VincePrince indicates that XRP/USD structure points to “some great potential” for the coin.
Thus far, prices are moving inside a descending wedge.
However, if XRP finds support, breaking above the upper boundary as the analyst shows, XRP might post a relief rally.
From this, there could be a firm ground for further continuation to the upside.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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