The largest altcoin by market cap, Ripple’s XRP, has been closely mirroring the performances of the market leader Bitcoin. Bitcoin which represents around 54% of the entire cryptocurrency market cap has a large impact on altcoins with its movements. Since XRP overtook Ethereum for the position of largest altcoin, it has been following Bitcoins movements more closely.
Yesterday’s price action resulted in XRP forming a Doji on the daily chart. A Doji is where the open is around the same point as the close and represents indecision from traders. XRP opened and close around $0.365 yesterday but moved as high as $0.4 and as low as $0.335. Yesterdays Doji candle is being followed by a Marubozu candle forming today. A Marubozu candle is a candle with a longer body and little or no wicks showing strong movement in one direction.
The drop in Bitcoin made the direction clear for XRP, and it has since dropped to $0.325. If Bitcoin continues to form new 2018 lows which are a strong possibility, we will likely see XRP move to $0.3 and potentially below. Currently, momentum is on the side of the sellers, and both the MACD and RSI are decreasing to reflect this. The MACD is crossing its signal line to the downside, a bearish signal.
- Bearish movements in Bitcoin are being mirrored in XRP with a Marubozu candle forming today.
- If Bitcoin continues to drop to new 2018 lows, a drop below $0.3 is a strong possibility for XRP.
- Momentum is currently on the side of sellers in XRP with both the MACD and RSI decreasing. The MACD is crossing its signal line to the downside, a bearish signal.
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