XRP has been weaker than the rest of the major cryptocurrencies, however, the digital asset might be looking for an explosive move upwards. According to Coinmetrics, the correlation between XRP and BTC has been increasing significantly lately.
Bitcoin has been able to break from its recent daily downtrend and has formed a bull flag that was confirmed a few days ago. If the correlation between both assets keeps increasing, XRP could very easily just follow Bitcoin’s steps and break above $0.2 which would mean a break out of the current downtrend.
XRP is really facing no major resistance levels until $0.233 aside from the 12 and 26-period EMAs. The RSI continues to be overheated for XRP but it’s not in the oversold area right now, trading volume has been dropping significantly again.
XRP Long Term Still Bearish
It’s important to remember that even if XRP can turn bullish in the short-term, its long-term outlook is still quite bad. The digital currency has crashed over 60% in the last 6 months and has continued its monthly downtrend since December 2017.
The weekly chart has also been in a downtrend for the majority of the time. XRP attempted a trend change back in September 2018 with a huge pumping week of +103% that unfortunately led nowhere. The digital asset lost most of the gains in the next 2 months and created another weekly downtrend.
The next attempt at a trend change happened in May 2019 with a good amount of followthrough but was still not enough and XRP crashed back down again within 2 months.
XRP’s total market dominance has been decreasing significantly from a high of 11% back in January 2019 to its current low of 4.3%.
Although XRP’s future looks quite dull, the digital asset can still see decent gains in the short term. If the correlation with Bitcoin increases further, XRP bulls could look for a weekly trend change as long as Bitcoin continues to post gains.