The crypto winter appears to have extended as the majority of the tokens have failed to sustain above the pivotal levels. While the Bitcoin price has been showing weakness, the major altcoins have also been unable to set up a fresh upswing. In the meantime, the token XRP, which has been pronounced a ‘dead coin’, is displaying the possibility of initiating a fresh bearish trend, which may cause more harm to the rally.
The XRP price is subject to very specific conditions as it moves as it wants and when it wants, regardless of the prevailing market conditions. The huge issuance of the token and more than half of it being in circulation have made it very difficult to handle. However, it does not prevent the XRP Army from being optimistic about the upcoming rally and having a double-digit target for the next ATH.
Having said that, the XRP price manifested a strong trend during the previous summer. So is there any chance for the token to display another such rally?
The cryptos tend to reciprocate a previous trend only when the trading conditions mirror the preceding trend. With this, the possibility of a 2x rally emerged, but this may not be a realistic trend for now. The XRP price began the 2023 trade on a huge bullish note by rising beyond the consolidation below $0.3 to levels beyond $0.43. Conversely, the 2024 trade initiated a huge bearish weekly candle that dragged the levels by more than 20%.
The technicals have been flashing huge bearish signals, with the RSI breaking down from the rising parallel channel. The XRP price is also trading in an ascending parallel channel but is testing the levels at the lower support. This could cause the price to breach below the levels that have acted as strong support previously. The bulls are believed to remain resilient, which may cause a significant pullback close to $0.41. Here, the bearish momentum could wane, enabling the bulls to exhibit their strength and trigger a rebound.
Credit: Source link