Why XRP’s +10% recovery is not without its pitfalls

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Why XRP’s +10% recovery is not without its pitfalls
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XRP retracement could go below $0.50 if BTC records more losses in the short term.

Further losses for BTC couldn’t be overruled as there was no catalytic event in the short term. If so, XRP could record more losses, giving the bears an extra market edge.The price action was above the short-term trend at press time, as shown by the 50-EMA acting as a dynamic support. Since 11 September, XRP extended recovery to hit +10%, based on the recent low and high .

But an extended BTC reversal could complicate matters for XRP bulls. In such a scenario, XRP could breach the 50-EMA and ease at the weekly bullish order block of $.4575 – $0.4935 . However, XRP bulls could only showcase bullish intent if they reclaim the immediate resistance level . Even so, they must deal with the roadblocks at $0.549 and $0.597

Interestingly, the RSI and CMF retreated but fronted a sideways movement a few hours before press time. It underscores eased buying pressure and capital inflows, followed by stagnation at the time of writing. A narrow consolidation below $0.5130 could happen if the trend extends.According to liquidation data from Coinglass, XRP recorded increasing liquidation of long positions from 21 September. It reinforces the possible short-term bearish sentiment into the weekend.

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