Analysts point to the potential emergence of a descending wedge pattern on the #XRPBTC chart, suggesting a potential recovery of 29% to reach 0.00002560 if confirmed.
The price hovers around $XRP
against the US dollar near the support level of $2.09 with increasing volatility.
The XRP/BTC trading pair has dropped to its lowest level in seven months this week under the pressure of increasing concerns about US monetary policy and accelerating macroeconomic pressures. The pair fell to 0.00001982 on Thursday, retreating from its January high of 0.000034, as price charts indicate a potential worsening of sell-offs.
#XRPBTC drops to a new low
The US Dollar Index (DXY) recently dropped to its lowest level in three years, as previously mentioned. Currency markets were highly sensitive in their response to political statements during the NATO meeting, where US President Donald Trump criticized Federal Reserve Chairman Jerome Powell.
Trump also hinted at changes in Federal Reserve leadership, as he has already begun reviewing candidates to succeed Powell. Meanwhile, the decline in the value of the US dollar has led to a flow of capital into a number of digital resources, such as Bitcoin ($BTC ) and Ethereum ($ETH ), although Ripple (#XRP ) has not kept pace with this growth yet.
Technical analysis of the daily chart for the XRP/BTC pair indicates the emergence of a bearish crossover, known as the "death cross," on June 12. This comes after the 50-day exponential moving average crossed below the 200-day exponential moving average, strengthening the downward trend. The pair also dropped to its lowest level at 37 on the Relative Strength Index (RSI), indicating increased downward pressure as it approaches the oversold level.
Despite the decline, analysts are monitoring a potential descending wedge pattern on the charts. This trend, characterized by converging trend lines and decreasing trading volume, could easily indicate a change in direction. However, these two patterns lack confirmation of trading volume, as well as a decisive breakout above the upper limit.
Will the XRP/BTC pair see a recovery soon?
If this trend continues, the XRP/BTC pair is likely to recover by around 29%, potentially reaching 0.00002560, as mentioned in our previous article. To clarify, this level is obtained by multiplying the widest part of the wedge pattern and dividing it into a potential breakout area. The last time the XRP/BTC pair displayed this technical pattern, the token supported by Ripple achieved huge gains, recording strong movements by the end of the fourth quarter of last year.
Meanwhile, the XRP against the US dollar pair is experiencing high volatility, with a price of around 2.10, near the key support level. The recent rejection from the $2.22 level reinforces selling momentum, as the four-hour MACD indicator indicates a downward trend. Furthermore, the bearish crossover of the indicator near the zero line aligns with the declining Relative Strength Index, which has now strongly fallen below the midpoint and is approaching the oversold area.
Investors are cautious amid the struggles of the US dollar and ongoing doubts about the Federal Reserve Chairman. The current price of Ripple (XRP) has significant support at the $2.09 level. However, if this level is breached, it will face the risk of incurring further losses. The price may then retreat to lower levels such as $1.90, $1.80, and $1.60, which served as rebound points in April. #NODEBinanceTGE #USCorePCEMay #BTC110KToday?