Bitcoin’s inability to sustain above $40,000 is causing sell-offs with each attempt, posing a negative outlook for altcoins. XRP Coin, one of the largest altcoins by market value, has struggled to break above a decreasing resistance trend line since July last year. Despite Ripple’s legal case gains, investor sentiment remains cautious due to the upcoming collective appeals on this year’s agenda.
XRP’s price has accelerated its decline, breaking below a horizontal support area and recently bottoming out at $0.49. The price hovers around $0.5085, but investors are concerned with Bitcoin’s stagnation around $39,800.
Technical analysis indicates that XRP’s Relative Strength Index (RSI) is targeting the oversold region, suggesting weakening demand. The price is trapped within a decreasing parallel channel on the daily chart, which could lead to further declines. However, some analysts expect a bounce back from the long-term support area, avoiding a clear bearish stance for now.
XRP Coin’s price failed to make a significant jump after reaching the support trend line of the channel. Analysts believe that a Gartley pattern formation is possible, but the price needs to convert higher levels into support for that to occur.
The most likely scenario appears to be a further breakdown of XRP Coin’s price from the channel, potentially leading to lows around $0.44. However, if the price overcomes the resistance at $0.55 and the channel’s midpoint, the current correction could end, potentially leading to a 23% increase towards the channel’s resistance trend line. Yet, this positive scenario hinges on Bitcoin reclaiming support levels at $40,400 and $42,000.
