XRP price fated to consolidate as investors ditch Ripple for volatile altcoins

XRP price continues to trade below the declining trend line connecting the string of lower highs formed since November 25, 2022.
Although unlikely, Ripple bulls might attempt a retest of $0.363 before triggering a quick correction.
Invalidation of the bullish thesis will occur if the remittance token produces a lower low below $0.333.

XRP price has been stagnating in the same region for quite some time and shows no signs of breaking out. This development is likely to continue while other altcoins have more than doubled in price in the last 10 days. Regardless, investors need to be cautious as a market reversal is likely on the cards for Ripple.

XRP price at wits’ end

XRP price has been producing lower highs since November 25, 2022, denoting a persistent downtrend. More recently, the remittance token slipped below a stable support level at $0.374.

Despite various attempts at breaking above it Ripple has so far failed. The last attempt saw XRP price retest the hurdle on December 27, 2022, but since then Ripple bears have taken control. After falling back and tagging the $0.333 support level thrice in January, the remittance token attempted another run-up, which fell short after a 6% rally.

If influential market mover Bitcoin’s price continues to hold up, there is a chance XRP price might attempt to squeeze out some bullish momentum in sympathy, resulting in a retest of the declining trend line mentioned above at $0.363. In a highly bullish but unlikely case, XRP price could retest the $0.374 hurdle.

XRP/USDT 4-hour chart

Since the outlook for XRP price is not optimistic, investors need to be cautious with opening late long positions. A sudden uptick in selling pressure from Bitcoin could trigger a sell-off for altcoins.

A breakdown of the market structure by producing a four-hour candlestick close below $0.333 will create a lower low and invalidate the bullish outlook. In such a case, XRP price could revisit the $0.316 support level.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram