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 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.