Amidst the current uncertainty around the Spot Bitcoin ETF, the crypto market witnessed high volatility this week. On October 16, a majority of major cryptocurrencies witnessed significant buying pressure, but many failed to sustain these gains and followed an immediate reversal. Thus, the 5th largest cryptocurrency XRP tried to regain $0.5 psychologically but experienced a notable supply pressure from above.
Is XRP Price Heading to $0.458?
- The XRP price witnessed supply pressure at the $0.5 mark
- A breakdown below the triangle pattern hints the sellers may extend the correction trend
- The intraday trading volume in the XRP is $619 Million, indicating a 13% loss
The XRP price has been under significant bearish pressure in October, dropping from a high of $0.548 to its current level of $0.489. This 11.2% decline broke through the support trendline of what was initially an ascending triangle pattern, a typically bullish pattern.
The breakdown from this formation indicates strong bearish momentum, and the failure to reclaim the psychological $0.50 level on October 16 further emphasizes the selling pressure. The altcoin’s brief surge to test the new resistance level, formed after the breakdown of the ascending triangle, met with a long-wick rejection on the daily chart.
This behavior suggests that the bears are currently in control and that the downward trend could continue. Should the sellers break below the low of the retest candle at $0.485, we could potentially see XRP decline a further 6.5% to reach the combined support level at $0.458 and a longer-term trendline.
XRP vs BTC Performance
In a broader comparative analysis, both Bitcoin and XRP have generally been on an uptrend since the start of 2023. During the period, the Bitcoin price showcased a stable rally. However, the higher volatility in XRP price and its proximity to its last swing low of $0.45 suggests a weakening in buyer conviction.