Bitcoin rallying is likely to bring XRP price higher because the entire crypto market is closely linked
Like Bitcoin, XRP price has been facing a sharp drop over the past few days after peaking last week. At press time, XRP’s price has fallen 5% over the past 24 hours, trading around $ 0.26 – well below some of the key technical resistance levels that have been forecast in the near term.
XRP price could soon reverse higher
According to Tom Demark Sequential, XRP will soon see a reversal. The technical indicator recently formed a “buy 9” candle, according to TD Sequential. This shows that the price will soon go higher than the current levels.
Chart of XRP price action over the past few months from a Telegram channel tracking the Tom Demark Sequential | Source: TradingView
This is not the only technical indication that XRP will soon move higher.
Head of technical analysis at cryptocurrency research firm Blockfyre, recently said:
“$XRP Still consolidating around this ever so important S/R that dates back 3 years. Ultimately expecting this to move up over the next few months at it’s own pace. Eyes on .475 in the coming weeks… You despise money if you don’t own XRP. Maximum point of financial opportunity is right at these levels.”
Chart of XRP’s price action over the past few years with analysis by crypto trader “Pentoshi” | Source: TradingView
There are also other signals that XRP will remain at a high valuation for the time being:
“In spite of $XRP’s -9.2% retrace this past week, the active address output we’re seeing for the #3 market cap #crypto asset has remained high. #Ripple holders can take solace in it being one of the few #alts with a DAA bullish divergences we’ve identified.”
However, Bitcoin could ultimately decide the direction of XRP, especially when macro market trends currently dominate the cryptocurrency market. Furthermore, the correlation between XRP and Bitcoin is still very high. Therefore, the uptrend of XRP is very susceptible to being dependent on BTC.
Analysts remain bullish on BTC despite a recent weakness that has peaked at $ 11,150.
Chart of BTC’s recent price action by NewsBTC analyst Tony Spiltoro | Source: TradingView
Analyst Tony Spiltoro said Bitcoin had formed a “buy 9” sequence candle, Tom Demark. These candles are usually seen when an asset is ready to reverse towards the upside. Bitcoin’s rally has the potential to take XRP higher once again, as the entire crypto market is closely linked.