The bearish movements which took place across the market yesterday resulted in Ripple’s XRP breaking down from the descending triangle pattern it had been forming and dropping below two key levels.
Despite this bearish drop, XRP managed to outperform Ethereum and claim the position of the largest altcoin by market cap.
The CTO of Ripple – David Schwartz – noted in a tweet yesterday the relationship between xRapid transactions and exchange between XRP and fiat.
xRapid is the service provided by Ripple which requires the use of XRP and with increasing adoption as of recent; this may be playing a role in the outperformance of XRP.
Every xRapid payment that succeeds involves a sale of fiat for XRP and then a purchase of fiat with XRP on one of the crypto exchanges that partners with us.
— David Schwartz (@JoelKatz) January 10, 2019
A descending triangle pattern is a bearish trend continuation pattern which had been forming in XRP since late December.
The bearish drop in XRP resulted in it dropping below the lower support line of this triangle and continuing to break below expected support around $0.335.
$0.335 was a former area of liquidity on drops but failed to hold up during yesterdays bearish price action.
Price did meet support initially at $0.335 but failed to hold on the retest as seen on the above hourly chart.
Price has since started to move back up towards $0.335 and has already tested the level once.
Traders may be looking to take short positions at this point or may be holding out for higher levels to see if the price can rise back up to $0.35.
- XRP outperformed Ethereum during yesterdays bearish drop and reclaimed the position of being the largest altcoin by market cap.
- Yesterday’s bearish drop resulted in XRP dropping below two key levels – $0.35 and $0.335.
- Price has since started rising back up to test $0.335.
Latest Ripple News:
- Ripple’s XRP Retakes Second Position From ETH in Crypto Rankings Despite Descending Triangle Breakdown
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