XRP’s attempts to regain momentum following last week’s big drop have stalled so far, at $1.50 now it rises as the most important price level.
A new technical analysis shared by crypto analyst Tara points to the unfinished price structure of Bitcoin as the main reason why the price action of XRP is still stuck below $1.5, and the next trend of the cryptocurrency may determine whether the altcoin can recover or sink further in the coming days.
XRP Hits Resistance, Bitcoin Structure Remains Incomplete
As the largest cryptocurrency, Bitcoin is known to have a strong influence how other major cryptocurrencies in the market such as XRP are faring. It is interesting that the technical analysis of the altcoin price action on the daily candlestick price chart made by the crypto analyst Tara links the two cryptos, and the opinion of XRP depends on how the price of Bitcoin goes from here.
Expert Says If You’re Holding XRP, Pay Attention To These Things XRP has already finished moving to its book 0.382 Fibonacci resistance, sitting around $1.53. As shown in the daily candle price chart below, the token filled the liquidity area around the October 10th flash crash low before bouncing back to $1.15. However, this bounce was rejected at $1.53. The rejection in that region shows that the altcoin bulls have done their part technically, but the necessary follow-through is not available.
The reason, according to the analysis, lies in Bitcoin. Waves on the Bitcoin chart still developing, which means that the entire crypto market has not yet reached a solution. As it stands, Bitcoin is currently in an unfinished phase of correction, along with many analysts they produce the lowest. This has led to cautious inflows into markets across the board. Because of this, XRP is struggling to attract sustained buying pressure even after reaching important technical peaks on its chart.
Bitcoin’s Short-Term Correction Can Drag It Down
At the time of writing, Bitcoin is trading at $69,800. Tara’s idea is Bitcoin will take corrective action in the $65,800 region before making another push higher towards its 0.5 resistance around $75,400. This type of pullback and continuation trend is impacting XRP’s price action.
If Bitcoin corrects as expected, the altcoin could be pulled back to the $1.30 area, which is highlighted as temporary support. The continuation of the wave with Bitcoin is expected to rise to 0.5 Fib at $1.65.
I more bearish condition revealed in the analysis will happen if Bitcoin fails to hold high levels of support and instead retreats to $52,200. Such a move could cause a very deep reaction in all altcoins, because it would authorize Bitcoin to break below its recent $62,800 on February 5. If so, the altcoin could be pulled down to its 0.786 Fibonacci support, currently sitting at $0.87.
Featured image from Adobe Stock, chart from Tradingview.com
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