Why is XRP Price Going Down While the Market Sentiments Turn Bullish?
The post Why is XRP Price Going Down While the Market Sentiments Turn Bullish? appeared first on Coinpedia Fintech News
While the markets are going greener after Bitcoin achieved the much-awaited milestone at $100K in the times when the analysts predicted a drop below $90,000. The reason behind being bearish on BTC was the rise of the other altcoins like XRP and ADA, which smashed $1 after being consolidated for a long time. However, after the star tokens take back control, these altcoins are experiencing a notable upward pressure.
While bearish predictions below $2 may hover over the XRP price rally, the token may either extend the consoldaition or undergo a suitable upswing in a short while.
The recent dump in prices has dropped XRP from the top 3 cryptos as Tether overtakes to reclaim the third position. This compels us to wonder whether the traders have booked their profits or continue to remain optimistic. This can be gauged by the exchange reserves, which hint at the traders mindset.
The balance on exchanges shed light on the probable next move of the traders and indicates whether they are bullish or bearish over the token. Holding cryptos on exchanges suggests the traders are thinking of selling or swapping the token, which has been noticed recently. After the XRP price marked yealy highs, the exchange reserves piled up, suggesting the traders are preparing for a trade. However, the daily active address and the transaction count have both dropped, suggesting no immediate action could be taken.
The markets have become bullish as Bitcoin has smashed the historic $100K milestone, which signals the liquidity flow back to the star token. However, after the rally cools down, these tokens are about to scale up and set up a monstrous rally.
The short-term trade suggests the price is trading within a rising, expanding channel, and after the recent breakdown, the price is facing massive upward pressure. The RSI is plunging, which indicates the price may continue to drop and reach the lower support zone between $1.83 and $1.94, which is also the support of the wedge.However, the selling volume remains restricted compared to that of the buying, suggesting a strong rebound could be fast approaching.
The Bitcoin price rally is expected to slow down after marking highs around $108,000, which could enable the altcoins to thrive. This could be when the XRP price may revamp a strong rise and surpass it’s previous ATH and achieve $4.
