Ripple’s digital currency XRP has underperformed Bitcoin for the majority of this year. Yesterday, in line with most altcoins, XRP managed to outperform. XRP still trades in a range despite this rise and may have much more downside risk than upside potential.
Price for XRP currently trades near $0.45, after increasing from about $0.44 yesterday. Price action has been trading in a range from about $0.425 to $0.475. There is potential resistance around $0.49 which was a point of significant trading activity in the past so there may be an increased possibility for XRP to break to the downside of the range as opposed to the upside. Just a few weeks ago, prior to the official announcement of 0x project’s listing to Coinbase Pro, XRP traded near $0.29. This shows the potential of sellers in the market to bring the price down to these points.
With Bitcoin representing 54% of the entire cryptocurrency market cap, its movements have a significant impact on those of altcoins. If Bitcoin makes bullish movements, there would be a far increased possibility of XRP breaking its range to the upside. With Bitcoin currently approaching the end of a triangle pattern which it has been forming since March, traders in XRP should monitor both the price action of XRP and the price action of the market leader Bitcoin.
- XRP outperforms on yesterdays increase but continues to trade in a range.
- There are some factors which point to an increased likelihood of XRP price action breaking its trading range to the downside as opposed to the upside.
- Traders in XRP should monitor both developments in the price of XRP but also developments in Bitcoins price action.
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