XRP’s efforts to regain upward momentum following last week’s sharp decline have so far stalled, with $1.50 now rising as the most important price level.
A new technical analysis shared by crypto analyst Tara points to Bitcoin’s unfinished price structure as the main reason why XRP’s price action is still stuck below $1.5, with the leading cryptocurrency’s next moves likely to determine whether the altcoin can recover or sink further in the days ahead.
XRP Hits Resistance, Bitcoin’s Structure Remains Incomplete
As the largest cryptocurrency, Bitcoin is known for strongly influencing how other large market-cap cryptocurrencies like XRP move. Interestingly, technical analysis of the altcoin’s price action on the daily candlestick price chart done by crypto analyst Tara links the two cryptos, and the outlook of XRP depends on how the Bitcoin price moves from here.
Expert Says If You Hold XRP, Pay Attention To These Things XRP has already completed a move into its textbook 0.382 Fibonacci resistance, which is sitting around $1.53. As shown on the daily candlestick price chart below, the token filled the liquidity zone around the October 10 flash crash low before bouncing at $1.15. However, this bounce was subsequently rejected at $1.53. The rejection from that region shows that the altcoin’s bulls have done their part technically, but the required follow-through is missing.
The reason, according to the analysis, lies with Bitcoin. The waves on Bitcoin’s chart are still developing, meaning the entire crypto market has not reached a resolution. As it stands, Bitcoin is currently in an unfinished corrective phase, and many analysts are projecting more lows. This has led to cautious capital inflows across the market. As a result, XRP is struggling to attract sustained buying pressure even after reaching important technical milestones on its own chart.
Short-Term Bitcoin Corrections Could Drag It Lower
At the time of writing, Bitcoin is trading at $69,800. The outlook by Tara is that Bitcoin will undergo a corrective move to the $65,800 region before making another push higher toward its 0.5 resistance around $75,400. This type of pullback and continuation scenario has implications for XRP’s price action.
If Bitcoin does correct as expected, the altcoin could be pulled back toward the $1.30 area, which is highlighted as short-term support. The continuation wave up by Bitcoin is then expected to take it as high as the 0.5 Fib at $1.65.
The more bearish scenario outlined in the analysis will occur if Bitcoin fails to hold higher support levels and instead breaks down to $52,200. Such a move would likely trigger a much deeper reaction across altcoins, because it would mandate Bitcoin breaking below its recent $62,800 low on February 5. In that case, the altcoin could be drawn down to its 0.786 Fibonacci support, which is currently sitting at $0.87.
Featured image from Adobe Stock, chart from Tradingview.com
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