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- XRP is in a rebound mode after intense price selloff in the past few weeks.
- Dogecoin is yet to clear its biggest losses as market uncertainty remains.
XRP investors could see good fortunes soon as the coin continues its recent price rally. On the other hand, the price of Dogecoin (DOGE) has dropped below key levels, ending the memecoin’s uptrend.
Analyzing XRP and DOGE Fibonacci Retracement Levels
XRP shows more signs of a bullish recovery after weeks of persistent downtrends. XRP, which peaked at $3.40 in mid-January, dropped as low as 25% this month.
However, the price is now regaining momentum, as the price chart indicates. According to MarketCap data, XRP has experienced a 3.16% increase in the last 24 hours, setting the price at $2.28.
Although XRP saw a massive sell-off earlier in the month due to dwindling prices, technical analysis reveals the price only saw a 38.2% Fibonacci retracement. Notably, Fibonacci retracement levels represent potential areas where prices resume the primary trend.
The 38.2% retracement is positive news for XRP bulls as it suggests potential areas for the price to resume its previous trend. XRP began an uptrend on November 4 at a low of 49.5 cents, which ended on January 16 at $3.40.
Trends often pull back to 38% Fibonacci levels and the 50% and 61.8% ratios before initiating larger rallies. That means XRP bulls have reason to be hopeful about future price increases.
While XRP demonstrates signs of larger rallies, the outlook for DOGE appears bleak based on an analysis of Fibonacci retracement levels. The price of DOGE has fallen below the 61.8% Fibonacci retracement, signaling an end of the memcoin’s rally.
DOGE has since parred off over 70% of its gain that began in October and peaked at 48.4 cents last December.
At press time, DOGE price was trading at $0.2062, down 0.54% over the previous day and 18.7% within the past week. Despite Dogecoin’s recent volatility, some analysts forecasted that the token could soar to $0.84 in March, as noted in our earlier post.
More Positive News for XRP
Meanwhile, more positive momentum is building for the XRP coin amid expectations of an Exchange-Traded Fund (ETF) approval. Positive news regarding an XRP-based ETF has flooded the market recently.
As CNF reported last week, Brazil’s Securities and Exchange Commission (CVM) has approved the world’s first XRP ETF. This approval allows investors to gain direct exposure to XRP through Brazil’s B3 stock exchange, showcasing the country’s progressive stance on crypto regulation.
Across the US, regulators are also reviewing applications for XRP ETFs from different firms. A potential approval could accelerate institutional demand for XRP if it follows in the footsteps of Bitcoin and Ethereum.
In a previous article we covered, Bitwise Chief Investment Officer Matt Hougan claimed that the institutional appetite for an XRP ETF is growing. His insights come amid a rising XRP ETF push from major asset firms, including Bitwise, Grayscale, and 21Shares.
