- Analysts note a possible falling wedge pattern on the XRP/BTC chart, suggesting a potential 29% recovery to 0.00002560 if confirmed.
- XRP against the U.S. dollar hovers near the $2.09 support level with heightened volatility.
The XRP/BTC trading pair dropped to a seven-month low this week under pressure of mounting concerns around the U.S. monetary policy and accelerating macroeconomic pressure. The pair slipped to 0.00001982 on Thursday, retreating from its January high near 0.000034, with price charts suggesting the selloffs could deepen further.
XRP/BTC Plunges To New Low
The U.S. Dollar Index (DXY) recently fell to a three-year low, as reported earlier. The currency markets were extremely sensitive in responding to the political statements during a NATO meeting where U.S. President Donald Trump criticized Federal Reserve Chairman Jerome Powell.
Trump also hinted at changes in Fed leadership as he has already started reviewing candidates to replace Powell. Meanwhile, the fall of the U.S. dollar has caused a capital inflow into a number of digital resources such as Bitcoin (BTC) and Ethereum (ETH), but Ripple’s XRP is not keeping up yet.
Technical analysis of the XRP/BTC daily chart indicates that a bearish crossover, famously referred to as a “death cross,” emerged on June 12. This comes after the 50-day exponential moving average crossed under the 200-day EMA to give strength to the direction of the slump. Also, the pair has fallen to a low of 37 in its Relative Strength Index (RSI), indicating increased bearish pressure since it approaches an oversold level.
In spite of the decline, analysts are monitoring a potential falling wedge construction on the charts. This trend, which is marked by a convergence of the trend lines and the diminishing volume of trade, can quite easily indicate a change in trend. Nonetheless, they are lacking in volume confirmation as well as in a decisive breakout above the upper boundary.
Will XRP/BTC Pair Record A Recovery Soon?
If the trend continues, the XRP/BTC pair has potential recovery of approximately 29% and it might reach 0.00002560, as mentioned in our previous story. For context, this level is obtained by multiplying the widest section of the wedge and dividing it onto a possible breakout area. The last time the XRP/BTC presented such technical formation, the Ripple-backed token gained tremendously as it registered robust moves towards the end of the fourth quarter last year.
In the meantime, XRP against the U.S. dollar is also experiencing high volatility, with a price of about 2.10, near the major support. A recent rejection from $2.22 adds to selling momentum, as the 4-hour MACD indicates bearish sentiment. Further, the indicator’s bearish crossover near the zero line aligns with a declining RSI, now firmly below the midpoint and approaching oversold territory.
Thus, investors are proceeding with caution as the dollar has been struggling and the head of Fed remains in doubt. The current price of XRP is taking major support at the $2.09 level. However, if the altcoin breaches this level, it is at risk of experiencing more losses. It could then slump to lower levels such as $1.90, $1.80, and $1.60, which previously served as bounce points in April.
