XRP May Be “Going for the Lows” as Bitcoin Plunge Derails Momentum
XRP has been caught within the throes of immense volatility as of late, which has come as the entire market also faces some turbulence due to Bitcoin’s ongoing decline.
This weakness has come about due to the cryptocurrency’s inability to break above the $0.60 region, with this proving to be a heavy resistance level for the token. It is now trading down nearly 50% from where it peaked, although it is still up over 100% from its recent lows of $0.23.
Where XRP trends in the mid-term will depend largely on Bitcoin and the rest of the market, as the benchmark crypto has had a firm grasp on the trends seen by the entire market as of late.
This weakness also comes as the entire market struggles to gain traction, with sellers overtaking buyers and forcing Bitcoin down towards $18,000. This marks a bearish resolution to an extended bout of consolidation that took place around $19,000.
One trader is expecting XRP to see some notable losses, pointing to its Bitcoin trading pair as an example of its mounting technical weakness.
He also notes that the Spark airdrop narrative that may have sparked this rally is likely losing steam and may not guide it any higher.
XRP Struggles to Gain Momentum as Selling Pressure Ramps Up
At the time of writing, XRP is trading down just under 1% at its current price of $0.55. This marks a notable decline from its recent highs in the mid-$0.60 region set earlier this week.
The selling pressure here has proven to be quite intense on multiple occasions throughout the past few days and weeks.
Where XRP trends next will undoubtedly depend at least partially on Bitcoin and the rest of the market.
Trader Claims the Airdrop Narrative Driving the Token is Dead
One trader believes that the Spark airdrop hype that catalyzed this rally is over, and that more technical catalysts will henceforth drive XRP’s price action.
He also believes that this could cause the token to see some immense weakness against Bitcoin.
“The recent drop on BTC has derailed XRP, and it looks to me like we are going for the lows unless we quickly reclaim some key levels. Also, I hope this officially lays to rest all the ‘spark airdrop pump’ narratives that have been floating around. Prep to buy the dip.”
Image Courtesy of Credible Crypto. Source: XRPBTC on TradingView.
So long as BTC and ETH stabilize and begin reversing their recent downtrends, there’s a strong possibility that XRP will see further upside in the mid-term.
Featured image from Unsplash. Charts from TradingView.