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XRP, the fifth crypto asset by market capitalization, has decoupled from Bitcoin (BTC), the leading digital coin. The decoupling occurred within the last 24 hours as the price of BTC recorded a slight uptick, leaving XRP in the red zone.
XRP struggles below $2 as bearish momentum persists
As per CoinMarketCap data, XRP is no longer responding to Bitcoin’s speculative cycles in the short term. This decoupling implies that XRP would have to rely on its own utility as an asset in the crypto space to post a price rebound if it hopes to quit the red zone.
XRP’s downward momentum has lingered for some time, and the coin has found it difficult to reclaim the $2 price zone. In the last 30 days, XRP has dipped by over 19.03% as volatility concerns continue to impact the altcoin.
A positive development from its recent decoupling from Bitcoin is that the trading volume is up by 25.11% to $3.33 billion as of this writing. The spike in volume is likely due to activity by large holders on the XRP market.
The price has remained within the $1.34 to $1.42 range over the last 24 hours. XRP currently exchanges hands at $1.34, which represents a 0.6% decline within the period.
The asset’s Relative Strength Index (RSI) of 43.23 does not offer much hope as it signals continued bearish momentum. With XRP decoupled from Bitcoin, its price needs to climb up to $1.40 and stabilize above it in order to challenge the current short-term downtrend.
Notably, for this to happen, the volume increase needs to be sustained by market participants. A continued surge in volume signals conviction on the part of buyers in the ecosystem. If the volume slips, XRP could face a more difficult path reversing the downtrend.
XRP’s liquidation pressure and March rebound outlook
As U.Today reported, XRP risks losing about 50% of its value against Bitcoin after it closed February bearish. XRP’s performance stayed below the middle Bollinger Band on its monthly time frame, signaling the likelihood of a lingering downtrend for the altcoin.
Already, on the first trading day of March, XRP investors experienced harsh liquidation for long traders as the market lost over $350 million in 24 hours. The price instability of XRP has left many guessing at the prospects of the coin.
Nonetheless, data suggests that XRP could rebound by as much as 16.5%, which is the coin’s monthly average growth rate for March. If this happens, XRP could close above $1.60 or higher under favorable conditions.
Dan Burgin
Vladislav Sopov
