But it’s not only the price of XRP that is remaining reasonably stable against BTC, but Stellar Lumens (XLM) is also showing strength. Would this imply that the inverse correlation is back?
Crypto market daily performance. Source: Coin360
XRP breaks back above the crucial level on the BTC pair
As discussed in the previous article, the red area was a vital level for XRP to reclaim to sustain any bullish momentum. The price wasn’t allowed to drop below the monthly level of 0.00002360 satoshis, which was held as support.
After that, a breakout above the 0.00002500-0.00002550 satoshis level was crucial. Luckily, the breakout occurred.
XRP BTC 1-day chart. Source: TradingView
That’s the first step for some momentum on the chart. The next crucial step would be a successful support test of the red zone. If such a test confirms the support level here, any further upwards momentum is likely to occur.
Overall, as many altcoins are showing a similar structure, the price of XRP is stuck in a sideways range between 0.00002350 satoshis and 0.00003300/0.00003800 satoshis, as the price has been hovering around here for ten months.
Remarkably, the price of XRP against BTC is on the same level as one month ago, just before the big crash of Bitcoin occurred. Given that the price is stabilizing and not being affected by the movements of Bitcoin shows strength and a possible bottom formation for XRP.
Older investors probably remember the good old days, during which XRP had an inverse correlation with BTC. The moment Bitcoin started to drop, XRP started to bounce upwards in the BTC pair, showing strength. This inverse correlation could be back and may become apparent in the coming period — the moment Bitcoin might continue its retracement.
USD pair facing resistance and needs to flip crucial support