XRP failed to break its price resistance during the latest crypto rally, with its price increasing by only 0.54% to $1.10650. In contrast, Bitcoin and Ethereum saw significant gains, with Bitcoin breaking the $64K resistance and Ethereum rising nearly 6% to $1,900.
Market Analysis
The latest crypto pump was driven by the June Consumer Price Index falling 0.4%, the steepest single-month drop since April 2020, and the strong Q2 earnings of major Wall Street banks. However, XRP’s performance was underwhelming, with the coin failing to break its price resistance set by the Crypto Winter.
XRP’s Struggles
XRP’s struggles can be attributed to the fact that when money re-enters the crypto market after a risk-off period, it tends to flow into Bitcoin first, followed by Ethereum. This is evident in the Altcoin Season Index, which is currently at 45, indicating that capital has not yet rotated down the risk curve to altcoins.
Technical Indicators
The technical indicators for XRP also suggest a bearish trend, with the Average Directional Index (ADX) reading 13.3, well below the 25 threshold that confirms a real trend. The Exponential Moving Averages (EMAs) also tell a bearish story, with the average price of the last 50 days trading well below the average price of the last 200 days in a formation called the death cross.
Future Outlook
The future outlook for XRP is uncertain, with the coin testing a weak support zone of its most recent bearish leg. The price is at a decision point, with the possibility of either holding and pushing for $1.13 or losing the $1.08 level and reopening the path toward $1.06 and the critical $1.02 floor. The outcome will likely depend on Bitcoin holding $64K and news out of the Senate on the Clarity Act schedule
Based on reporting from crypto.news.
