XRP recently made a bold attempt to reach a new all-time high, only to be met with resistance from market pressures. Unfortunately, this resulted in significant losses for investors as selling pressure intensified.
The fate of XRP's recovery now hangs in the balance of Bitcoin's trajectory, as its movements will greatly impact the future performance of XRP.
XRP found itself losing key supports as over 95% of its supply entered profitable territory earlier this week, indicating a potential market top. This triggered a flurry of selling activity, leading to a sharp downturn and wiping out 3% of the profit supply, causing concern among investors.
The diminishing profits present a notable risk, potentially prompting more holders to sell to secure their gains. If this trend persists, it could exert further downward pressure on prices. The asset's ability to maintain investor trust will be crucial in determining its next steps.
XRP's larger market momentum is intricately linked to Bitcoin, with a correlation standing at a robust 0.92. This close tie implies that XRP is likely to mirror Bitcoin's price shifts, a favorable scenario given Bitcoin's optimistic trajectory.
Bitcoin seems positioned to reclaim the $100,000 support level, a move that could uplift the overall market sentiment, XRP included. Should Bitcoin stabilize and move upwards in price, XRP might find the necessary support to resume its recovery journey.
Currently trading at $2.46, XRP has dipped below critical support levels at $2.95 and $2.70. The price decline halted as the altcoin tested support at $2.33, temporarily preventing further losses.
The next hurdle for XRP involves regaining lost ground, particularly breaking through the strong resistance at $2.70. Staying below this price point could lead to a period of consolidation unless there is a surge in bullish momentum.
If XRP mirrors Bitcoin's path, a notable recovery could be in store. Surpassing $2.70 would mark a significant turning point, possibly paving the way for further gains. Exceeding $2.95 would invalidate the current bearish-neutral outlook, setting the stage for a full recovery and potential upside.
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