Yesterday, we could see a solid increase in Bitcoin and Ethereum and something that showed a type of stabilization on the markets. However, now we can see that XRP follows ETH and the price failed to gain momentum against the US dollar. It seems like Ripple’s token and its failure to gain strength was a warning sign that BTC and ETH might also struggle to move higher.
Recently, the cryptonews showed that both BTC and ETH declined by around 5%. The situation was stabilized this morning and the losses are now half of the ones established overnight. However, what’s important is that XRP follows ETH and has managed to shed 2% off of its value overnight.
Ripple started a fresh decline after it failed to surpass the main $0.2000 resistance area. A swing high was also formed near $0.1986 before the price declined below $0.1950 – and there was a break below a major bullish trend line with support near $0.1955 on the hourly chart of the XRP/USD pair.
The price is now trading below the $0.1950 level and the 100 hourly simple moving average. Besides, it broke the $0.1920 support and traded close to $0.1880. A low is formed near $0.1884 and the price is currently consolidating.
XRP follows ETH above the 23.6% Fib retracement level of the recent decline from the $0.1986 high to $0.1884 low. An initial hurdle is near the $0.1925 and the 100 hourly SMA. The Ripple news and charts show that the first key resistance is near $0.1950 and a connecting bearish trend line on the same chart.
Additionally, the 50% Fib retracement level of the recent decline from the $0.1986 high to a $0.1884 low is near the $0.1935 level. Therefore, an upside break above $0.1935 and $0.1950 is needed for a decent upward move. As XRP follows ETH, we can see that the main resistance is still untouched.
On the downside, we can see an initial support near $0.1900 and $0.1880 below which there is a risk of more losses below $0.1850 and $0.1820. Looking at the chart, the Ripple price is showing bearish signs below $0.1950 and it could decline further if both Bitcoin and Ethereum continue to slid in the near term.
The total market cap is now at $195 billion while the dominance of Bitcoin reached a new daily high at 68.9%.
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