This is an analysis post by Coindesk analyst and chartered market technician Omkar Godbole.
Alternative cryptocurrencies typically move in tandem with bitcoin But the size of their price fluctuations often differs.
Take payments-focused XRP as an example. Since July, each recovery in Bitcoin has triggered events in XRP; However, XRP has consistently produced “lower heights.” A lower high occurs when a price top is lower than the previous one, indicating the weakening purchase pressure.
This sustained pattern of lower heights in XRP along with Bitcoin’s new heights, signals underlying weakness in XRP’s momentum – a sign of minor conviction among XRP buyers compared to BTC. It suggests that XRP can be vulnerable to sharper losses during Bitcoin strikes.
Bitcoin began on a sharp rally at the end of September and reached a new height of over $ 126,000 Monday. XRP also buy interest, but its recovery peaked with $ 3.10 – well below its September height of $ 3.19.
The XRP had formed a similar lower high in mid -August as Bitcoin rose to its then height of $ 124,000.
This series of lower heights in XRP since July, which occurs against the horizontal support zone of $ 2.65- $ 2.70, suggests weakened buyer strength.
In other words, with each lower high, the likelihood of XRP breaking during this support zone increases and potentially triggers a deeper sale to $ 2.00.
Prices must top the latest lower height of $ 3.10 with high quantities to invalid the bearish setup.
That said, from now on, the weekly MacD histogram, a key indicator for assessing trend strength and potential twists, supports the bearish views. It crossed below the zero line last month and now gradually produces deeper bars below zero, signaling strengthening downward momentum.
