Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
XRP’s bid to prove itself against Bitcoin has run out of steam, and the charts are starting to make that clearer with each passing week.
What initially looked like the start of a major breakout on the XRP/BTC pair now resembles the shape of a double top, a formation that typically indicates weakness rather than strength and basically says that the trend is exhausted.
The rally that began earlier this year lifted XRP above its 200-week average. For a moment, it seemed like the token might chip away at Bitcoin’s lead. The price pushed into the 0.00003200 BTC region twice, only to be rejected both times, sending the pair back toward familiar support levels.
The inability to extend higher after those attempts has left 0.00002200 BTC as the line to watch, because, historically, once this level is lost, the structure usually breaks toward 0.00002000 BTC. Moving averages flattening across the board add weight to the argument that the upside potential has been spent.
Digging deeper
On shorter time frames, the picture is no better. The pair has been stuck between resistance near 0.00002600 BTC and the 200-day average. Every bounce is quickly shut down, and every defense looks less convincing than the last. Sellers have dictated the pace, while buyers have done just enough to hold their ground without shifting the balance.
This all plays out while Bitcoin itself trades above $111,000. Meanwhile, XRP holds at $2.83 against the dollar but struggles against BTC.
Unless XRP can break through its ceiling decisively, the current impression is that the token has already exhausted its opportunities, with Bitcoin maintaining the upper hand.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team