An expert now predicts a massive shift for XRP after a loss in key support by falling below the 20-day EMA support.
A prominent analyst has indicated that XRP may be on the brink of a significant movement following its recent loss of crucial support levels on the daily charts.
This insight comes as the cryptocurrency continues to navigate a volatile market landscape.
Recent Performance
XRP has experienced a turbulent journey, dropping 6% yesterday to close at $2.1537.
However, the digital asset has shown some resilience today, slightly rebounding and bringing its weekly change to a positive 3.76%.
Despite this uptick, the overall market sentiment remains cautious.
Signs of an Impending Shift
Amid the ongoing uncertainties in the market, recent analysis suggests that XRP is poised for a decisive movement.
Market speculator Dom has stated that a significant shift is likely to occur soon, highlighting that the current volatility in the XRP market is beginning to stabilize.
A Decrease in Volatility
Dom pointed out that the volatility observed on the XRP chart is waning, suggesting that traders are becoming more deliberate about their positions.
This decrease in volatility could pave the way for a more predictable price movement.
However, he also noted that XRP’s loss of a crucial moving average support could lead to potential downtrends in the near future.
The Importance of the 20-Day EMA
The analyst emphasized the significance of the 20-day exponential moving average (EMA) as a key indicator for XRP.
Throughout the previous week, XRP consistently held above this moving average on both USD and BTC charts.
However, the recent close below this moving average raises concerns about further price declines.
Dom stated, “If XRP remains below the $2.2 mark, it will likely continue to exist in bearish territory,” indicating that the asset is at risk of experiencing additional downward pressure.
Bitcoin’s Influence on the Market
Furthermore, Dom highlighted the strong correlation between XRP’s performance and Bitcoin’s price movements.
He warned that if Bitcoin were to trade below $95,000, it could have adverse effects on altcoins, including XRP.
He referred to the $95,000 level as a critical “center of value area,” underscoring its importance in shaping the overall market sentiment.
As of now, Bitcoin is trading at approximately $96,400, which keeps it above this crucial threshold and may provide some stability for altcoins.
Meanwhile, XRP is currently priced at $2.17.
With the current market dynamics at play, XRP investors are urged to stay vigilant.
The combination of losing key support levels and the continued influence of Bitcoin suggests that significant movements are on the horizon.
For more Daily Crypto News and updates like this, join the newsletter or opt-in for push notifications.
Follow us on CoinMarketCap.
Also Read: XRP’S Drop Now Sparks Optimism
About The Author
Leave your thoughts below
Read Daily Market News – https://franknez.com/ for more news and updates like this