Technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole reveals concerning patterns for XRP investors.
While cryptocurrencies typically move in correlation with Bitcoin (BTC), XRP is showing distinct weakness in its price action. The payments-focused cryptocurrency has been forming a series of "lower highs" since July, creating a bearish technical pattern.
Each Bitcoin rally has triggered corresponding XRP movements, but XRP's peaks have been progressively lower. This pattern indicates diminishing buying pressure and suggests XRP could experience accelerated declines during Bitcoin corrections.
Bitcoin's recent surge to new highs above $126,000 contrasted sharply with XRP's struggle to surpass its September peak. XRP's current resistance sits at $3.10, significantly below its previous high of $3.19.
The persistent lower highs against the $2.65-$2.70 support zone signal deteriorating buyer conviction. Technical indicators, including the weekly MACD histogram crossing below zero with deepening negative bars, reinforce the bearish outlook.
For the bearish scenario to be invalidated, XRP would need to break above the $3.10 resistance level with substantial trading volume.