Analyst Outlines Possible XRP Price Reaction as Bitcoin Crosses $50,000

CryptoInsightUK, a well-respected market analyst, has outlined the possible reaction from XRP price as Bitcoin (BTC) launches a campaign above the pivotal $50,000 price level. 

XRP has failed to record substantial price surges despite Bitcoin clinching a 2-year high above $50,000. This underperformance has triggered investor angst. However, amid these concerns, the analyst’s insights confirm that the weekly close for XRP reveals a mix of positive and negative indicators.

Positive Indicators of XRP Weekly Close

On the positive side, there is optimism in the form of a confirmed weekly engulfing candle at a critical support level. An engulfing candlestick occurs when the body of one candle completely covers or engulfs the body of the previous candle.

Update – We have the weekly close for $XRP.

TA and news.

Pros;

– We have a confirmed weekly engulfing candle at a level of key support.
– We have survived FUD narratives without setting new lows.
– We saw a similar set up in October and rallied over 50% in the following 3… https://t.co/uQbcNRI3XT pic.twitter.com/HFWufJ0WbD

— Cryptoinsightuk (@Cryptoinsightuk) February 12, 2024

This phenomenon can either be bullish or bearish depending on the setup. Notably, the recent occurrence is a typical instance of a bullish setup as XRP rallies by more than 4% over the last week, per data from an accompanying chart. 

CryptoInsightUK drew parallels between the current pattern and a previous setup in October 2023. Historical data confirms that, following the formation of the pattern, XRP recorded an impressive 50% rally over three weeks, clinching a high of $0.75 in November 2023.

In addition, the analyst pointed out that despite facing various FUD narratives, XRP has managed to avoid any collapse to new lows. Amid the sustained bearishness in the broader crypto market and the concerns raised by XRP investors, the asset only hit a low of $0.4853.

CryptoInsightUK also highlighted the activation of the Clawback feature on the XRP Ledger as a positive development. Recall that the XRPL implemented the Clawback feature on Feb. 8, two weeks after the XLS-39 amendment reached validator consensus.

The feature enhances the security framework of the XRP Ledger by allowing issuers of tokens to roll back assets in response to suspicious activities. Despite the functionality not being applicable to XRP itself, the analyst sees its implementation as an important development for the ecosystem.

Negative Indicators

However, CryptoInsightUK does not shy away from acknowledging the downsides of the current market situation. According to him, the engulfing candle, while confirmed, was not particularly impressive, lacking substantial volume to support it. 

The analyst further revealed that XRP finds itself in a current conundrum, stuck between a pivotal reactionary level at $0.56 – $0.59 and an important support range of $0.485 – $0.46, with the bulls and the bears battling to push the token above or below the key levels.

XRP Price Reaction as BTC Crosses $50K

Amid the current situation, CryptoInsightUK remains cautious, emphasizing the importance of Bitcoin’s performance for XRP’s future trajectory. The analyst is closely monitoring Bitcoin, stating that a robust break above $50,000 could set the entire market for a significant upward movement.

Notably, Bitcoin recently breached $50,000, setting sail to the $51,000 price territory in an attempt to solidify its hold above the $50K level. With BTC currently trading for $51,568, XRP has merely reclaimed $0.53, with a trading price of $0.5304 at the reporting time.

The analyst believes that if Bitcoin maintains an uptrend, it could serve as a catalyst for XRP to break above resistance, triggering a potential surge in momentum. Nonetheless, some analysts have argued that altcoins such as XRP would only start surging after a new BTC ATH.