Cryptocurrency Investors were delighted to learn that the industry is expected to rebound strongly in 2023. All major cryptocurrencies, led by Bitcoin, saw a rally. XRP/USD also rallied from its low of $0.3 in early 2023, almost doubling within the first quarter. This rally was a result of the combination of the prolonged dollar weakness combined with enthusiasm for cryptos. The Federal Reserve idea of pausing interest rate increases as inflation falls was also considered.
However, the dollar’s weakness has stopped and it has risen so far during the second quarter. The cryptocurrency market has seen the biggest gains, and half of the 2023 gains were lost by XRP/USD. The bearish channel indicates further weakness, and bulls must be able to hold onto $0.3 for them to have any hope.
The technical picture is getting more alarming for XRP/USD, with the bearish channel still intact. The rally appears to be nothing more than an attempt to rally the bear market, and failed right where it was supposed to—at resistance offered by previous support. If the market breaks below the channel of bears (i.e. below $0.3), the projected move shows continued weakness towards the $0.2 area. In order for bulls to still hope, the market needs to hold within the channel. A move towards the resistance level of $0.6 would be ideal, but the risk of a break below $0.3 is also a possibility. This has negative implications.