This is an analysis article Coindesk analyst and Omkar Godbole approved market technician.
Alternative cryptocurrencies generally evolve in tandem with bitcoin But the extent of their price fluctuations often differs.
Let us take as an example the XRP focused on payments. Since July, each increase in Bitcoin has triggered an XRP rally; However, XRP has constantly produced “lower peaks”. A lower summit occurs when a price peak is lower than the previous one, indicating a weakening of the purchase pressure.
This persistent tendency of lower peaks of the XRP, in parallel with the new peaks of Bitcoin, indicates an underlying weakness of the dynamics of the XRP-a sign of a lesser conviction among XRP buyers compared to BTC. This suggests that XRP could be vulnerable to greater losses during Bitcoin withdrawals.
Bitcoin started a strong resumption at the end of September, reaching a new summit of more than $ 126,000 on Monday. The XRP also aroused a purchase interest, but its increase culminated at $ 3.10, well below its September 3.19 summit.
The XRP had reached a summit similar in mid-August, when Bitcoin reached its historic summit of $ 124,000.
This series of lower XRP summits since July, occurring in the horizontal support area of ​​$ 2.65 to $ 2.70, suggests a weakening of the force of buyers.
In other words, at each lower top, the probability that the XRP goes below this support area and potentially triggers a larger sale to $ 2.00 increases.
Prices must exceed the last lower summit of $ 3.10 with high volumes to invalidate the downstream configuration.
That said, at present, the weekly MacD histogram, a key indicator to assess the strength of the trend and potential reversals, supports the lowering perspectives. It went under the zero line last month and now produced bars gradually deeper below zero, signaling a strengthening of the downward dynamics.
