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XRP’s $2.40 Support at Risk? How Bitcoin’s Comeback Can Shift Things
The recent price action of Ripple (XRP) has been nothing short of tumultuous, with the cryptocurrency struggling to find its footing amidst a sea of uncertainty. With the asset currently trading below the crucial $2.40 support level, many are left wondering if this could be the beginning of the end for XRP’s upward momentum.
One potential factor that could drastically alter the trajectory of the market is Bitcoin’s (BTC) recent comeback. The rise in Bitcoin dominance to 61.20% has sparked a flurry of questions regarding the implications on the broader market, particularly with regards to altcoins like XRP.
As it stands, XRP’s price chart shows three consecutive red candlesticks on the daily timeframe, a development that underscores the prevailing bearish pressure in the market. Furthermore, the sharp 76% decline in active addresses on the XRP Ledger suggests that many investors have been cashing out their profits and exiting the cycle.
However, despite these negative signs, there are reasons to believe that whales may still be accumulating at current levels, potentially paving the way for a rebound. The absence of significant whale accumulation in February has raised eyebrows, as similar moves seen during previous cycles were often followed by extended upswings. This notable disparity could indicate a lack of conviction among large-scale investors, thus casting a shadow over XRP’s near-term prospects.
The recent surge in Bitcoin dominance is another crucial development that warrants attention. As the market’s focal point begins to shift back towards BTC, it may be more likely for investors to reassess their risk appetite and potentially re-allocate their assets, leading to a renewed interest in XRP.
Conversely, if Bitcoin’s momentum continues to gather pace, it could have a direct impact on XRP’s market dynamics. A potential Bitcoin-driven rally could tempt many traders away from XRP, leading to further losses and increased pressure on the $2.40 support level.
Source: ambcrypto.com
