XRP Crash Brewing? Prices continue to hit “low” with new highs in Bitcoin

This is an analysis post by Omkar Godbole, a CoinDesk analyst and chartered market technician.

Alternate cryptocurrencies usually move in parallel with Bitcoin BTC$121,553.00However, the magnitude of price fluctuations is often different.

Take XRP, which focuses on payments, as an example. Since July, every bitcoin has caused an increase in XRP. However, XRP consistently produces “lower highs.” Lower highs occur when the price peak is lower than the previous peak, indicating a weakening of purchase pressure.

The sustained pattern of XRP’s falling highs alongside the new Bitcoin highs indicates a fundamental weakness in XRP momentum, indicating a lower confidence level among XRP buyers compared to BTC. This suggests that XRP may be vulnerable to sudden losses during the Bitcoin fall.

Bitcoin began to rise sharply in late September, reaching a new high of over $126,000 on Monday. There was also interest in buying in XRP, but the rise peaked at $3.10, well below the September high of $3.19.

XRP formed a similar lower price in mid-August, when Bitcoin skyrocketed to its then high of $124,000.

The XRP string of highs since July has been on the horizon support zone of between $2.65 and $2.70, suggesting a weaker buyer power.

In other words, every time a high drops, XRP is more likely to fall below this support zone, causing an additional drop to $2.00.

To disable the bearish setting, the price must exceed the most recent high of $3.10 with a large volume.

That said, the weekly MACD histogram, an important indicator for assessing trend strength and potential reversal, supports the bearish outlook. It was below the zero line last month and now gradually formed deeper bars below zero, indicating the momentum of the descent is growing.