{"id":410149,"date":"2020-01-08T14:08:30","date_gmt":"2020-01-08T14:08:30","guid":{"rendered":"https:\/\/wncen.com\/?p=410149"},"modified":"2024-06-11T13:36:21","modified_gmt":"2024-06-11T13:36:21","slug":"ripples-xrp-struggles-after-explosive-price-rally-and-bigger-losses-are-likely","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ripples-xrp-struggles-after-explosive-price-rally-and-bigger-losses-are-likely\/","title":{"rendered":"Ripple’s XRP Struggles After Explosive Price Rally; And Bigger Losses Are Likely"},"content":{"rendered":"

Ripple blockchain’s native asset XRP showed signs of a weakening bullish momentum as traders’ reassessed their risks in the altcoin market.<\/p>\n

The third-largest cryptocurrency by market capitalization plunged by 4.24 percent on Tuesday. The losses came as a correction to an explosive price rally<\/a> registered earlier this week, wherein the XRP-to-dollar exchange rate swelled by circa 15 percent. As of today, the pair was more or less flat in the absence of adequate buying sentiment.<\/p>\n

\"xrp,<\/a>
The XRP price hints a reversal upon testing a key resistance trendline | Source: TradingView.com, BitStamp<\/figcaption><\/figure>\n

The losses also came at the time when XRP’s top rival, Bitcoin, was extending its upside move. The leading cryptocurrency surged by up to 9.08 percent<\/a> in the past 48 hours while XRP’s performance reflected losses of up to 8.23 percent.<\/p>\n

Pitted against each other, XRP looked weaker. The coin’s rate against bitcoin plunged by as much as 12.15 percent between Monday and today.<\/p>\n

Resistance Area<\/h2>\n

The Ripple token’s correction came at a time when it tested a key resistance area defined by $0.225 and $0.231. The range is notorious for capping XRP’s upside attempts in the November-December trading session<\/a> of the last year. It also holds a historical significance as support to the cryptocurrency’s downside attempts between August 2019 and November 2019.<\/p>\n

Meanwhile, the latest pullback also confirmed the presence of a Descending Trendline. The greened slope \u2013 evidently \u2013 served as a reminder for XRP traders to exit their long entries and take out scalp profits. As a result, the cryptocurrency price plunged.<\/p>\n

\"ripple,<\/a>
Bulls felt weak before a historically significant resistance zone | Source: TradingView.com, BitStamp<\/figcaption><\/figure>\n

The correction does not intimidate XRP’s interim bullish bias. A breakout attempt above the Descending Trendline<\/a> and the resistance area could have traders eye $0.252 as their primary upside target.<\/p>\n

Meanwhile, the $0.225-0.231 can flip to become supports to serve as a breeding ground for another bull run \u2013 towards the purpled 200-daily moving average.<\/p>\n

The Downside Risks in Ripple’s XRP<\/h2>\n

Bitcoin’s growing prominence as a haven<\/a> and the controversy surrounding Ripple Labs are among the challenges that could hamper XRP’s latest upside run.<\/p>\n

Investors and analysts have expressed their discontent with the Ripple foundational team for dumping billions of dollars worth of XRP<\/a>. Prominent trader Crypto Jack on Tuesday said that Ripple CEO Brad Garlinghouse could any day sell a large amount of XRP stash<\/a>.<\/p>\n

\u201cLargest XRP vs BTC daily candle up (for now) since May 2019,” he tweeted. “Not bad, keep going before the army comes back and Brad starts dumping on them again.”<\/p><\/blockquote>\n

\n

Cutting $XRP<\/a> at tiny loss here<\/p>\n

Fully retraced yesterdays candle, not my cup of tea pic.twitter.com\/GMd0Tg2yVC<\/a><\/p>\n

— \/\/Bitcoin \ud835\udd75ack \ud83d\udc10 (@BTC_JackSparrow) January 7, 2020<\/a><\/p><\/blockquote>\n