Post XRP Breakout failed as it loses its “coil power”

• XRP has been caught in volatility lately, with much of this in favor of the bulls
• The cryptocurrency saw a parabolic rise earlier this week which caused its price to multiply over the past few days
• This intense recovery has slowed and the lack of fundamental catalysts to support this movement can make it weak and easily recoverable.
• Where it goes in the short term will largely depend on the bulls as any dissipation of buying pressure could give space for the cryptocurrency to see an intense decline
• A trader is now noticing that XRP may be on the verge of a selloff in the days and weeks to come

XRP has surprisingly been one of the best performing altcoins over the past few days and weeks, with the previously “dead” cryptocurrency witnessing a massive resurrection as capital inflows poured in at a rapid pace.

The medium-term trend performance will largely depend on Bitcoin and Ethereum, as these two cryptocurrencies have led the price action seen by smaller cryptocurrencies in recent weeks.

It is important to note that XRP is showing signs of technical weakness, with one analyst noting that a major sell-off could be just around the corner.

XRP loses steam as sellers move to erase recent gains

At the time of writing, XRP is trading down just under 7% at its current price of $ 0.65.

While it is down sharply from its recent highs, the cryptocurrency is still up from the $ 0.23 lows set just before this parabolic rally took place.

It fell from the highs of $ 0.80 set yesterday during the height of the XRP craze, but there is still a serious chance that the bulls will regain control of its price action.

A failed breakout could lead to further downside

A trader explained in a recent tweet that XRP may be on the verge of seeing a sharp decline, with the token losing its momentum following the recent rejection at $ 0.80.

He notes that “there is no coil power left,” which is a favorable sign for the bear.

“XRP: Breakthrough failed, back into the banner and too deep now. Therefore, no coil power left, waiting for a cut. If you are still interested in trading with this, close the chart and set the alerts on HTF levels. “

Image Courtesy of Chase_NL. Source: XRPUSD on TradingView.

The next few days should provide some in-depth information on where XRP and the altcoin market will go.

There is a strong possibility that it will be largely determined by where Ethereum and Bitcoin move in the days to come.

Featured image from Unsplash.
Charts from TradingView.