A well-known analyst insists that XRP may take decisive action after losing major support within the daily time frame.
XRP
Yesterday, the stock continued its volatile run, falling 6% to close at $2.1537. However, the native token of XRPL rebounded slightly today, with a weekly change of +3.76%.
Facing market uncertainty, recent analysis suggests that precise movement for XRP is imminent. Market speculator Dom asserts that action will be taken soon.
Volatility is decreasing
Dom believes that the volatility on the XRP chart is diminishing, indicating that the market is becoming more interested in a specific trend. Therefore, he claims that action may be taken soon.
Meanwhile, he points out an indicator that may determine XRP’s next move. According to his commentary, XRP has lost a key moving average line support, increasing expectations of a price drop.
The analyst notes that last week, XRP remained above the 20-day Exponential Moving Average (EMA) on both the USD and BTC charts. However, yesterday’s closing price below the moving average line could potentially lead to further decline.
XRP 20-day moving average
Furthermore, Dom highlights that if XRP’s position remains below $2.2, it will ensure that the asset is still in bearish territory. Therefore, XRP could potentially experience further decline at any time.
Market heavily relies on Bitcoin
Dom points out that the market’s trend still heavily relies on the next move of Bitcoin. The analyst’s post suggests that altcoins will be bearish if Bitcoin trades below $95,000.
It is worth noting that market speculators refer to levels below $95,000 as the value center region, emphasizing its relevance in the cryptocurrency market sentiment. At the time of writing, Bitcoin is trading at $96,400, above the so-called altcoin bearish zone.
Meanwhile, XRP is trading at $2.1993, up 2% in the past 24 hours.