MANCHESTER, United Kingdom – Have you heard of the term “dead cat”-bounce in the cryptocurrency market? It is described as an altcoin trying to rally towards a certain resistance level to fall and gain more declines. This scenario happened to XRP after it tested the $0.50 resistance level. There had been some bullish moves from the altcoin for the past couple of days, and experts also believed that Ripple is on its way to recovery after its loss on Wednesday and Thursday. However, things did not play out as expected since it fell by 10% after testing the resistance level.
Ripple is one of those altcoins that relies on momentum. It was close to hitting the $0.50 level, but the bulls failed to keep the momentum up. Even if it reached $0.50, the question still lies on whether Ripple will be able to stand its ground. From the looks of the candlesticks, it seems like there is no demand yet for the altcoin. Hence, the decline.
Experts believe that XRP will be able to hit the $0.50 level as it retests the mark this week, but they also warn enthusiasts that it is likely to fall again after surpassing it. It will try to find more demand, and it is something that bulls need to put pressure on if they want to see greens in the charts.
This view is only for the short term, though, since it is too early to tell if Ripple could make an upswing or not. Technical analysis indicators still show promising results for the coin in the long run. Until the end of June, analysts warn traders and holders of a possible bearish movement, not only for XRP but also for the whole cryptocurrency market as it tries to recover. Even if that is the case, they are also looking at possible high gains towards the end of the year.