While Bitcoin (BTC) has taken a steep turn to the downside and settled into a downtrend, high-cap altcoin XRP (XRP) has naturally been pulled down with it. However, the XRP/BTC chart tells us that XRP is actually not doing that bad – and certainly could be doing worse.
To illustrate this trend, we look at the XRP/BTC daily chart, with ETH/BTC for comparison. We can clearly see that, when Bitcoin really began to tumble about a week ago, ETH/BTC tumbled right with it – amplifying its losses versus fiat pairings like USD.
Instead, XRP/BTC has had an inverse direction from Bitcoin (and Ethereum) during this time, heading up as Bitcoin heads down. In general, XRP continues to show support around 3,000 satoshis, directly within the “golden pocket” area of the Fibonacci retracement range.
However, looking at a more typical chart, we see that XRP/BTC is perhaps retesting this region a bit too much. The EMAs are gathered together in a knot just at the current price, and it seems like an important moment has arrived for recent XRP price history. Closing below this knot of EMAs would not be good – although the aggressive defense wick that has already come through today could give bulls confidence that this level will be defended.
The histogram seems to be arching down at time of writing. The generally falling volume indicates some kind of consolidation, and we can look forward to a larger move when this volume profile tapers off even more.
If we look at the XRP/USD pairing, however, we see less to be excited about on this 3-day chart. XRP has obviously slid with Bitcoin, as has almost every cryptoasset. Holding up well to Bitcoin on the XRP/BTC chart can only translate so well to the XRP/USD chart, and XRP has lost an important local support area ending at about $.25.
On the RSI, we see no chance of a higher low to form a divergence. On the histogram, we see a flat trajectory trending down – which is at least better than an accelerating arch down. But with six red candles already painted on this medium timeframe chart, we can probably expect the present support box to hold for at least a while, and a relief rally of some magnitude.
In sum, we can see that XRP is doing far less bad than some other high cap altcoins. As Bitcoin heads south into 2020, dragging everything with it, that might seem like cold comfort; but it’s better than no comfort at all.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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