The altcoin rally from the last two weeks is definitely on hold now, as the leading XRP (XRP) altcoin takes a considerable dip. However, it is not assured that XRP’s, what looked like, new uptrend is finished.
Starting with this 2-hour XRP/BTC, we see that the altcoin has taken a pretty significant tumble overnight, although this dip has not come with significant sell volume. The 55 exponential moving average (EMA) here, which was nicely confluent with the local uptrend, have both been lost at time of writing.
XRP is chopping pretty nicely here: it seemed to break up out of a local consolidation on top of the latest rally, which could have easily been a bull pennant. XRP dipped when Bitcoin (BTC) had its own dip last night, which exhibits how choppy the market is with Bitcoin getting to the end of its own market cycle.
Looking at a different 2-hour XRP/BTC chart, we see a Fibonacci retracement overlay. XRP has now retraced from local highs all the way down into the so-called “Golden Pocket” area, where price reversals are often found. XRP’s price is now exactly within this zone.
If XRP is going to continue with what was looking like a new uptrend, this is likely where the price hit will have to stop. And given how weak sell volume is on this dip, this doesn’t seem very unlikely -- although there are no real clues yet to signal a direction in the coming day or days.
Finally, we see on XRP/USD that the dip has actually been held at time of writing, but this is not by virtue of XRP’s own strength, as we have seen. The Bitcoin dip that caused XRP’s dip has recovered, and this is helping out altcoins’ prices across the board.
Here we see the familiar Bitcoin-altcoin relationship of: if Bitcoin does anything dramatic, then altcoins take a hit. As mentioned earlier, Bitcoin is becoming mercilessly choppy as it nears the end of a multi-month consolidation pattern. And Bitcoin market dominance is on the rise again, although this may be just a correction on the way down.
It is still not confirmed if leading altcoins like XRP have had a broad and long-term trend reversal from their lows, or if the latest altcoin rally was a bump before setting even deeper lows. But with XRP squarely within the Golden Pocket, we should know soon.
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