Categories
Daily Crypto News

Analyst: XRP Posts Failed Breakout as It Loses Its “Coil Power”

XRP has been caught in the throes of volatility as of late, with much of this greatly favoring bulls The crypto…

Share with Others
  • XRP has been caught in the throes of volatility as of late, with much of this greatly favoring bulls
  • The crypto saw a parabolic upswing earlier this week that caused its price to multiply over the past few days
  • This intense upswing has slowed down, and the lack of any fundamental catalysts backing this movement may make it feeble and easily reverted
  • Where it trends in the near-term will depend largely on bulls, as any dissipating buying pressure could give room for the crypto to see an intense decline
  • One trader is now noting that XRP could be on the cusp of seeing a selloff in the days and weeks ahead

XRP has surprisingly been one of the best performing altcoins throughout the past few days and weeks, with the previously “dead” cryptocurrency seeing a massive resurrection when inflows of capital poured in at a rapid rate.

Where it trends in the mid-term will depend largely on Bitcoin and Ethereum, as these two cryptocurrencies have been guiding the price action seen by smaller cryptocurrencies over the past few weeks.

It is important to note that XRP is showing signs of technical weakness, with one analyst noting that a serious selloff could be just around the corner.

XRP Losses Steam as Sellers Move to Erase Recent Gains

At the time of writing, XRP is trading down just under 7% at its current price of $ 0.65.

Although it is down significantly from its recent highs, the crypto is still up from its lows of $0.23 set just before this parabolic rally took place.

It is down from its $0.80 highs set yesterday during the height of the XRP mania, but there’s still a serious chance that bulls will regain control of its price action.

A Failed Breakout Could Lead to Further Downside

One trader explained in a recent tweet that XRP could be on the cusp of seeing a sharp decline, with the token losing its momentum following the recent rejection at $0.80.

He notes that it has “no coil power left,” which is a bear-favoring sign.

“XRP: Failed breakout, back inside the pennant, and way too deep inside now. Therefore, no coil power left, expecting chop. If still interested in trading this, close chart and set alerts at for HTF levels.”

Image Courtesy of Chase_NL. Source: XRPUSD on TradingView.

The coming few days should provide some serious insight into where XRP and the altcoin market will trend next.

There’s a strong possibility that it will be largely determined by where Ethereum and Bitcoin move in the days ahead.

Featured image from Unsplash.
Charts from TradingView.

Dai vs. Traditional Fiat: Examining the Advantages and Disadvantages

In the world of finance, the emergence of cryptocurrencies has brought about significant changes to the traditional financial landscape. One such cryptocurrency that has gained considerable attention is Dai. In ...
Read More

Finding the Best Crypto News Sources in 2023

The cryptocurrency market is fast-paced and ever-changing. With new projects launching, regulations shifting, and prices fluctuating daily, it's essential for crypto investors to stay up-to-date on the latest developments. However, ...
Read More

Top 5 Best Memecoins in 2023

It's the year 2023, and the meme culture got more popular than anytime. Every industry started to use memes for marketing or purely for fun. The crypto space is not ...
Read More

Momentum Trading in Cryptocurrencies: Riding the Price Trends to Profit in 2023

In the ever-evolving world of cryptocurrencies, momentum trading has emerged as a prominent strategy for savvy investors seeking to capitalize on price trends. With the volatile nature of digital assets, ...
Read More

Australian crypto exchange launches learning scheme

There has barely been a day over the past year or so when crypto has been out of the news in Australia. It all began with the sudden collapse of ...
Read More
Share with Others