XRP at Risk of Decline: Bitcoin Reaches New Peaks

XRP continues to reach new peaks alongside Bitcoin, while also forming lower highs. This situation indicates that XRP may be more susceptible to sharper losses.

According to an analysis by CoinDesk analyst and Certified Market Technician Omkar Godbole, alternative cryptocurrencies generally exhibit similar movements to Bitcoin. However, the magnitude of price fluctuations for these assets often varies. For instance, for the payment-focused XRP, every rise in Bitcoin has also led to a rise in XRP; however, XRP consistently produces 'lower highs'. A lower high occurs when the peak price is lower than the previous level, indicating that buying pressure is weakening.

Bitcoin experienced a sharp increase at the end of September, reaching a peak above $126,000 on Monday. XRP also saw buying interest; however, this rise peaked at $3.10, significantly below the $3.19 seen in September. A similar lower high situation was observed in mid-August when Bitcoin rose to $124,000. Since July, these lower highs in XRP have been forming near the horizontal support zone around $2.65-$2.70, indicating that buying power is weakening. In other words, with each lower high, the risk of XRP breaking below this support zone increases, which could trigger a deeper sell-off down to $2.00.

To invalidate the bearish outlook, prices need to break above the most recent lower high of $3.10 with high volumes. However, for now, the weekly MACD histogram serves as an important indicator when assessing trend strength and potential reversals, supporting the bearish outlook. It fell below the zero line last month and is now producing increasingly deep bars below zero, indicating that downward momentum is strengthening.