XRP, the cryptocurrency associated with Ripple, has been grappling with renewed supply pressure, with its price circling around the $0.5 mark, indicating that the prevailing downtrend is likely to persist. The recent pressures led to the breaking of a crucial support trendline associated with an ascending triangle pattern. This breach is a clear signal of potential bearishness for XRP in the near term.
An ascending triangle pattern is a technical chart formation frequently observed in financial markets. This pattern suggests a potential bullish breakout and often serves as an indicator of upward momentum. In an ascending triangle, the lower trendline represents an area of support, while the upper trendline is a resistance level.
The price tends to move within these boundaries, creating a triangular shape. Traders often look for a breakout above the upper trendline as a signal to go long.
XRP Rollercoaster Ride
Earlier in the day, XRP made an impressive surge in price, gaining nearly 4% and reaching the $0.51 level. However, this local peak was short-lived, as the coin retraced its steps shortly after. It attempted another ascent but remained trapped in a volatile cycle. As of the latest data, XRP is trading at approximately $0.493742, reflecting a 24-hour gain of 0.9% but a seven-day loss of 1.6%.
This rollercoaster ride in XRP’s price was triggered by recent news surrounding the American securities regulator’s supposed approval of the iShares Bitcoin spot ETF. This ETF was initially filed by BlackRock, the world’s largest fund manager. The news initially posted on various crypto media outlets gained credibility when Reuters and Bloomberg Terminal picked it up. Consequently, Bitcoin surged by 10% in response to this development.
XRP market cap at $26.3 billion. Chart: TradingView.com
However, BlackRock soon issued a statement refuting the news, clarifying that their BTC ETF is still under consideration by the regulatory authorities, including SEC Chairman Gary Gensler. This retracement in Bitcoin’s price had a ripple effect, impacting XRP and other altcoins.
Blackrock has confirmed with Fox that their ETF filing is still under review
— Will Clemente (@WClementeIII) October 16, 2023
Insights And Implications
XRP’s current price analysis suggests that if it falls below today’s low of $0.485, the altcoin could experience a further decline of approximately 6%. The next support level is anticipated at $0.458, with a worst-case scenario potentially driving the price down to $0.42.
The crypto market is known for its inherent volatility, and sudden reversals are not uncommon. As investors and traders navigate these uncertain waters, it is imperative to stay informed and exercise caution in their financial decisions.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Investopedia