The cryptocurrency winter appears to have been extended with most tokens failing to sustain above their core levels. While the price of Bitcoin is showing weakness, major altcoins are also unable to make a new upward trend. Meanwhile, the token XRP, declared a ‘dead coin’, is showing potential to trigger a new bearish trend, which could further harm the rally.
The price of XRP is subject to very specific conditions, as it moves where and when it wants, regardless of general market conditions. The massive issuance volume of tokens, with more than half of them in circulation, makes processing very difficult. However, this does not stop the XRP army from being optimistic about the upcoming rally and having double-digit targets for the next ATH.
Nonetheless, the price of XRP has shown a strong trend over the past summer. So, is it likely that the token will see another bull run?
Cryptocurrencies tend to reciprocate previous trends only when trading conditions reflect the previous trend. This suggests the possibility of a two-fold rally, but this may not be a realistic trend at the moment. XRP price rose above the consolidation level below $0.3 to levels above $0.43, starting 2023 trading on a big note. Conversely, the 2024 trade began a huge bearish weekly candle that pushed the level up more than 20%.
Technically, a huge bearish signal flashed as the RSI broke down in a rising parallel channel. XRP price is also trading in an upward parallel channel but is testing lower support levels. This could cause the price to fall below levels that previously served as strong support. Bulls are believed to remain resilient, which could result in a significant decline closer to $0.41. This is where bearish momentum can wane, allowing the bulls to show their strength and trigger a rebound.