Why is XRP Price Going Down While the Market Sentiments Turn Bullish?
The market turned greener after Bitcoin reached the long-awaited $100,000 milestone, while analysts predicted it would fall below $90,000. The reason for the bearishness on BTC is the rise of other altcoins such as XRP and ADA, which have broken above $1 after a long period of consolidation. However, these altcoins are facing significant upward pressure after the star tokens took back control.
While bearish forecasts below $2 may hover around Ripple price If it rebounds, the coin may extend its consolidation or experience a modest uptick in a short period of time.
The recent price crash has seen XRP fall out of the top three cryptocurrencies, while Tether has overtaken the third spot. This forces us to wonder if traders have taken profits or are continuing to remain optimistic. This can be measured by foreign exchange reserves, which hints at the mentality of traders.
Balances on exchanges reveal what traders are likely to do next and indicate whether they are bullish or bearish on the coin. Holding a cryptocurrency on an exchange indicates that a trader is considering selling or exchanging the coin, something that has recently attracted attention. After XRP price hit a yearly high, foreign exchange reserves are increasing, indicating that traders are preparing for the transaction. However, the number of daily active addresses and transactions has declined, suggesting that immediate action is not possible.
The market turned bullish as Bitcoin crossed the historical milestone of $100,000, signaling a return of liquidity to the star coin. However, after the rally cools down, these coins are about to expand in size and trigger a scary rally.
Short-term trading suggests price is trading within an ascending, expanding channel, with prices facing significant upward pressure following the recent breakout. The RSI is plunging, which suggests that the price may continue to fall and hit the lower support area between $1.83 and $1.94, which is also the support of the wedge. However, selling remains restrained compared to buying, indicating strength in prices. A rebound could come soon.
Bitcoin prices are expected to slow down after hitting highs around $108,000, which could allow altcoins to flourish. At this point XRP price could rise significantly and surpass the previous high and reach $4.
