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The aggregated cryptocurrency market has been caught within a firm uptrend over the past few days, with Bitcoin rallying up to its key resistance in the upper-$6,000 region leading many major altcoins including XRP all posting some decent gains.
Although XRP has been able to recapture its key position above its $0.15 support, it has been underperforming Bitcoin over the past several days and weeks.
This has led analysts to note that the impotency of the crypto’s bulls during the course of the recent market-wide uptrend seems to elucidate some underlying weakness, potentially signaling that it will soon lose this support and reel lower.
XRP Inches Up 3%, Underperforms Bitcoin
At the time of writing, XRP is trading up just over 3% at its current price of $0.16, which marks a slight climb from daily lows of $0.15 that were set yesterday.
Over a weekly period, the crypto has been able to put some notable distance between its current price and lows of $0.14 that were set when the markets were caught in a bout of sideways trading on the heels of the massive volatility seen a couple of weeks ago.
Today’s movement has been somewhat tempered, as it is currently trading down over 2% against its BTC trading pair, marking what one analyst describes as an “impotent” reaction from bulls to bolster the cryptocurrency.
“Ripple – Daily chart – Looks like another failed bounce setup, as bulls remain impotent,” Big Cheds noted in a recent tweet.
$XRP #Ripple – Daily chart – Looks like another failed bounce setup, as bulls remain impotent#TheStandard pic.twitter.com/a66ETWsaFv
— Cheds Trading (@BigCheds) March 24, 2020
Just How Far Could the Crypto Drop Before Finding Any Notable Support?
Although $0.15 may be acting as strong support in the near-term, some analysts believe that XRP is bound to see significantly further downside before it is able to find any significant support.
Livercoin, a prominent cryptocurrency analyst on Twitter, spoke about the embattled crypto in a tweet from this past weekend, telling his followers that he anticipates XRP to decline another 30% or more against its BTC trading pair before it finds any significant support.
“Expecting another 30% drop on XRP. 2500 sats support holding strong but bulls are going to throw in the towel eventually,” he noted.
Expecting another 30% drop on $XRP
2500 sats support holding strong but bulls are going to throw in the towel eventually… pic.twitter.com/9M9I2ZGpyh
— Livercoin (@Livercoin) March 22, 2020
This potential bearishness will be further heightened if BTC is unable to maintain its current stability, with a strong rejection in the upper-$6,000 region potentially leading XRP to see a capitulatory decline.
Featured image from Shutterstock.
