XRP Decoupled from Bitcoin, But Investors Stand By
Despite a recent slowdown in its upward momentum, XRP seems to be enjoying growing support from long-term investors. Although its correlation with Bitcoin has significantly decreased, this shift in behavior could help stabilize the altcoin’s price trajectory.
Indeed, the correlation between Ripple and Bitcoin has dropped to 0.4, its lowest level since February. Historically, such a decrease in correlation has led to a sharp drop in XRP prices.
With Bitcoin reaching new highs, this increasing decoupling could be interpreted as a sign of weakened confidence in XRP. Normally, Bitcoin’s performance would have benefited altcoins like XRP.
As the link with Bitcoin weakens, XRP will need to find other growth drivers to support its upward momentum in the future. Indeed, XRP is struggling to recover from the smart money distribution that took place earlier this year. While altcoins like Solana and Ethereum seem to have reset their RSI divergences in high-time frames, XRP has not yet emerged from this phase and is struggling to regain the upper hand.
Increased Confidence from Long-term Investors
Contrary to the diminishing correlation with Bitcoin, XRP investors’ behavior shows a more stable trend. The total supply of Ripple tokens untouched for 3 to 6 months is consistently increasing.
This suggests that short-term holders are professionalizing and becoming medium-term investors, a sign of growing confidence and stability.
The increase in dormant XRP supply indicates that more investors are holding onto their tokens rather than selling. This long-term holding behavior could help cushion short-term price fluctuations.
Technical Analysis : XRP Heading Towards $2.7 ?
Currently trading at $2.33, XRP has slipped below the $2.3 support level in the last 24 hours.
If the decline continues, Ripple could test the next support level at $2.12, which would be a significant loss for investors.
However, the token is forming a descending triangle in the 4H chart and could trigger a breakout to the upside with a potential target of $2.74 in the coming days. However, upside breakouts could serve as an opportunity for smart money to sell and push Ripple down once again. Therefore, monitor this $2.74 resistance in the days ahead.
Although the token has experienced a slowdown in its upward momentum, increased confidence from long-term investors could help stabilize the price trajectory of the altcoin. Despite the decrease in its correlation with Bitcoin, Ripple seems to benefit from solid support that could help it overcome upcoming challenges.
How to Buy XRP Simply on Bitget ?
Buying XRP on Bitget is a quick and accessible process, perfect for investors looking to diversify their portfolio with this popular cryptocurrency. Here are the simple steps to get you started:
- Sign up on Bitget: Visit the official Bitget website, create an account with your email address, and complete identity verification (KYC) to secure your profile.
- Fund your account: Deposit funds via fiat currency (bank transfer, credit, or debit card) or transfer cryptocurrencies like USDT or BTC from an external wallet.
- Find the token: Use the search bar or navigate to the markets section to locate XRP. Select a trading pair, e.g., XRP/USDT.
- Place a buy order: Opt for a market order (buy at the current price) or a limit order (at a defined price), specify the amount of tokens to buy, and validate your transaction.
