This week, the crypto market experienced a lot of ups and downs due to uncertainty about the Spot Bitcoin ETF. On October 16, most major cryptocurrencies saw a surge in buying, but it didn’t last. XRP, the 5th largest cryptocurrency, attempted to break the $0.5 mark but faced strong selling pressure.
XRP faced selling pressure at $0.5. If it breaks below the triangle pattern, it suggests sellers might continue the correction trend. The intraday trading volume for XRP was $619 million, marking a 13% decrease.
Source: Tradingview
XRP’s price has faced strong bearish pressure in October, dropping from $0.548 to $0.489, marking an 11.2% decline. This drop broke through a bullish pattern called an ascending triangle and indicated significant bearish momentum.
On October 16, XRP failed to reclaim the $0.50 level, showing continued selling pressure. An attempt to test the new resistance level encountered rejection, indicating that bears currently dominate the market.
If sellers break below the retest candle’s low at $0.485, XRP could potentially decline by another 6.5% to reach the combined support level at $0.458 and a longer-term trendline.
When comparing Bitcoin and XRP’s performance in 2023, both showed upward trends. Bitcoin had a steady rally, while XRP exhibited higher volatility and came closer to its recent low of $0.45. This suggests that confidence among XRP buyers is waning.
Analyzing using technical indicators
Bollinger Bands: The lower band of the Bollinger Band indicator moving lower indicates strong bearish momentum.
Moving Average Convergence Divergence (MACD): A bearish crossover between the MACD blue and signal orange lines indicates an ongoing downward trend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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