XRP long-term Price Analysis: 9 September

Following Bitcoin’s lead, XRP has been consolidating. The value of the fourth-largest digital asset in terms of market cap was close to $0.2391, at press time. Given the recent pressure in the market, XRP has been shedding its value and was currently close to its immediate support of $0.2288.

The above chart of XRP outlined the gradual descent of the coin from $0.3046 to $0.2389, at press time. This shrinking of price took place within a descending channel which was a sign of a bearish market, as the price generally breaks down from the pattern.

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Currently, the XRP market had low volatility as the Bollinger Bands had converged. While the signal line takes the position under the candlesticks, indicating a potential change in price trend, the 50 moving average was bearish. As XRP’s price tried to break higher from the current price level, the asset has remained in a state of equilibrium, wherein the buying and selling pressures had evened out.

XRP’s immediate support has been close to $0.2288 and $0.2207, while its resistance remains much higher at $0.2789, as the price did not test resistances in between the two points.

Source: XRP/USD on TradingView

According to the Fib retracement tool, in the given period XRP’s price had been moving sideways between $0.2437 and $0.2208. Although the price was stuck between these two prices even at press time, there has been an effort in the market to push the price higher. However, at this point, $0.2437 was acting as a resistance. XRP may take some time to recover from a descending market as the immediate resistances have been market further at $0.2598, $0.2759, and $0.2959.

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As XRP bounces between the current resistance and supports, its correlation with Bitcoin has sunk.

Source: CoinMetrics

According to the above chart, the BTC-XRP correlation coefficient fell from 0.8598 to 0.7967 within a couple of days. Even though the decrease in correlation, it was still strong to drive the price on the whims of the BTC market trend.