The price action of all cryptocurrencies within the previous few days has been dull but that of XRP has been particularly poor. Bitcoin moved from the highs established at $10.1k last week to $8,709 at press time while XRP has declined by 18 percent within the same time frame.
XRP’s poor performance brings fear of deeper correction in the weeks ahead as a trader suggests the possibility of retesting the price area close to the lows established during the market crash in March.
The charts of XRP show some bearish technical signs despite being able to hold above the $0.21 range for an extended period. A renowned cryptocurrency trader and technical analysis author known as Nik Patel said XRP’s market structure is now bearish following its loss of a technical support.
According to Patel, if the cryptocurrency continues to experience rejection at the $0.21 range, he anticipates a swift move beneath $0.175. He then said that XRP might eventually revisit the range lows at $0.125, which is the lows attained in mid-March market crash.
There is focus on the performance of Bitcoin being the benchmark cryptocurrency which determines the entire markets’ direction. Hence, if Bitcoin incurs a rally, XRP may follow suit and save XRP holders. This is because altcoins are characterized by close trajectory tie to that of Bitcoin.
At the moment, analysts are charting Bitcoin’s bullish medium to long-term outlook, mentioning both technical and fundamental factors. According to Mike Novogratz of Galaxy Digital in a recent interview with CNBC, Bitcoin may incur an upsurge towards $20k by the end of 2020 due to the stimulus provided by governments, as well as the record amount of liquidity operations by central banks.
As for technicals, a leading trader in recent times noted that Bitcoin’s current weekly chart is looking like what it was when the bull rally in 2019 started.