Yesterday’s daily candle formed a Doji for XRP. A Doji candle is a candle where the open and the close are around the same. This candle typically shows uncertainty from the side of traders with regards to where price is headed.
Price action has followed up this Doji with a drop in price action today. Price traded yesterday around $0.365 which is above the key level of $0.35. It has since dropped $0.34 with both the MACD and RSI also decreasing showing momentum moving more towards the side of sellers.
What are the key factors driving this decline? Since becoming the largest altcoin by market cap, XRP’s performance has been closely tied to the market leader Bitcoin. Bitcoin has also been trading around a key level at $4000 but has stayed below. With the price of the market leader staying below this key level, it increases the likelihood that the next significant movement in Bitcoin will be to the downside.
XRP’s performance is likely reflecting this and will also be more likely to move to the downside given Bitcoin’s recent price action. If XRP drops, support will be expected to come into play from around $0.30 to $0.315.
- Yesterday’s price action formed a Doji on the daily candle showing uncertainty on the side of traders.
- XRP has declined today below a key level at $0.35, likely reflecting Bitcoins increased the chance of moving down from here.
- If XRP drops from, support will be expected to come into play around $0.3 to $0.315.
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