The cryptocurrency market is celebrating Bitcoin’s $100k target, projecting a crucial milestone for the web3 industry. While the major breakout sets jollification for crypto users, the altcoin market is yet to pick its momentum. Moreover, the XRP price defied the bullish momentum and plunged over 10% since yesterday, teasing a breakdown below the $2.5 floor.
As of now, the Ripple crypto trades at $2.34 with an intraday loss of 0.2%. According to Coingecko, the asset’s market cap is at $134.2 Billion, while the $25 Billion.
Key Highlights:
- The XRP price breakout from the rounding bottom pattern signals the broader trend remains bullish.
- The ADX indicator surged to the oversold region of 69%, indicating the need for a potential pullback to regain bullish momentum.
- The FIB level shows $1.98 or $1.71 as immediate support for crypto buyers.
XRP Price Pullback Eye Key Fibonacci Support Levels
Since mid-week, the crypto market witnessed a renewed bullish momentum as pioneer digital asset Bitcoin rebounded to chase the $100k level. While this target is achieved, some major altcoins, including XRP, struggle to surge higher.
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In fact, the Ripple crypto plunged from $2.9 to $2.36 in the last three days, registering a loss of 18.8%. However, the reversal is viewed as a post-rally pullback for buyers to recuperate the exhausted bullish momentum.
The momentum indicator ADX surged to 69% in the daily chart, accentuating an overextended rally in the near term. According to the Fibonacci retracement level, the coin price currently seeks support at $2.36, a level coinciding with 23.6% FIB.
If the correction extends, the altcoin could extend the current correction to $1.98 or $1.71, aligned with 38.2% and 50% FIB levels, respectively.
Rounding Bottom Sets Stage for $3.6 Rally
The weekly chart analysis reveals that XRP’s price in November experienced a significant breakout above the $1.96 neckline, completing a rounding bottom pattern. This pattern, often regarded as a bullish reversal signal, is characterized by a gradual shift in market sentiment from bearish to bullish, forming a U-shaped curve on the chart.
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If the chart pattern holds true, the altcoin is likely to retest the $1.96 level as potential support before the major leap. With sustained buying, the post-breakout rally could chase the $3.6 mark.
