XRP Posts Failed Breakout as It Loses Its “Coil Power”

  • XRP has been hit by volatility lately, with much of it favoring bulls
  • Crypto experienced a parabolic boom earlier this week, which caused the price to multiply in the past few days
  • This intense boom has slowed down, and the lack of basic catalysts to aid this movement can make it weak and easy to reverse
  • Where there are short term trends will largely depend on bulls, as any easing of buying pressure in crypto could give room for an intense decline
  • A trader now notes that XRP could be close to a sell-off in the coming days and weeks

XRP has been surprisingly one of the top performing altcoins in the past few days and weeks, with the previously “dead” cryptocurrency experiencing a massive revival when capital inflows poured in quickly.

Where there are medium-term trends will largely depend on Bitcoin and Ethereum, as these two cryptocurrencies have determined the price movement of smaller cryptocurrencies in recent weeks.

It’s important to note that XRP is showing signs of technical weakness, with one analyst noting that a serious sell-off could be just around the corner.

XRP loses steam as sellers erase recent profits

At the time of writing, XRP is trading just under 7% at its current price of $ 0.65.

While crypto is well below its recent highs, it is still above its lows of $ 0.23, which were set just before that parabolic rally.

It’s lower than its highs of $ 0.80 set yesterday during the height of the XRP mania, but there is still a serious chance that bulls will regain control of their price movement.

A failed outbreak could lead to further disadvantages

A dealer explained in a recent tweet that XRP could be on the verge of a sharp decline, with the token losing momentum at $ 0.80 following its recent rejection.

He notes that there is “no more coil power,” which is a bear-promoting sign.

“XRP: Failed outbreak, back in the pennant and now way too deep inside. Therefore, there is no longer any coil power left because chopping is to be expected. If you are still interested in trading this close the chart and set warnings for HTF levels. “

Image Courtesy of Chase_NL. Source: XRPUSD on TradingView.

The coming days should give some serious insight into where XRP and the altcoin market are headed next.

There is a strong possibility that this will largely depend on where Ethereum and Bitcoin are headed in the days to come.

Featured image from Unsplash.
Charts from TradingView.