u.today
$XRP, the fifth crypto asset by market capitalization, has decoupled from Bitcoin ($BTC), the leading digital coin. The decoupling occurred within the last 24 hours as the price of $BTC recorded a slight uptick, leaving $XRP in the red zone.
$XRP struggles below $2 as bearish momentum persists
As per CoinMarketCap data, $XRP is no longer responding to Bitcoin’s speculative cycles in the short term. This decoupling implies that $XRP would have to rely on its own utility as an asset in the crypto space to post a price rebound if it hopes to quit the red zone.
$XRP’s downward momentum has lingered for some time, and the coin has found it difficult to reclaim the $2 price zone. In the last 30 days, $XRP has dipped by over 19.03% as volatility concerns continue to impact the altcoin.
A positive development from its recent decoupling from Bitcoin is that the trading volume is up by 25.11% to $3.33 billion as of this writing. The spike in volume is likely due to activity by large holders on the $XRP market.
The price has remained within the $1.34 to $1.42 range over the last 24 hours. $XRP currently exchanges hands at $1.34, which represents a 0.6% decline within the period.
The asset’s Relative Strength Index (RSI) of 43.23 does not offer much hope as it signals continued bearish momentum. With $XRP decoupled from Bitcoin, its price needs to climb up to $1.40 and stabilize above it in order to challenge the current short-term downtrend.
Notably, for this to happen, the volume increase needs to be sustained by market participants. A continued surge in volume signals conviction on the part of buyers in the ecosystem. If the volume slips, $XRP could face a more difficult path reversing the downtrend.
$XRP’s liquidation pressure and March rebound outlook
As U.Today reported, $XRP risks losing about 50% of its value against Bitcoin after it closed February bearish. $XRP’s performance stayed below the middle Bollinger Band on its monthly time frame, signaling the likelihood of a lingering downtrend for the altcoin.
Already, on the first trading day of March, $XRP investors experienced harsh liquidation for long traders as the market lost over $350 million in 24 hours. The price instability of $XRP has left many guessing at the prospects of the coin.
Nonetheless, data suggests that $XRP could rebound by as much as 16.5%, which is the coin’s monthly average growth rate for March. If this happens, $XRP could close above $1.60 or higher under favorable conditions.