Quick take:
Earlier this week, we saw Bitcoin retest the $10,000 psychological level for the third time since the Coronavirus crash of mid-March 2020. As a result, traders and BTC analysts have identified it as a potential triple top that might lead to Bitcoin losing value in the next few days and weeks. Such a drop might imply that Bitcoin’s dominance in the crypto markets will keep reducing this providing the much-needed breathing space for XRP to once again thrive in the crypto markets.
In an earlier analysis, BTC dominance was fading and at a level of 67%. Checking the Bitcoin’s dominance chart once again, the value has dropped to 65.97% at the time of writing this. This in turn means that once again, XRP’s support at $0.20 is the price level to watch as we walk into the new month of June.
To note is that XRP still in the falling wedge identified by the popular crypto analyst, MagicPoopCannon. In his analysis, Magic postulated that XRP had the potential of reaching a value of $0.77 if the wedge broke to the upside. Further recreating the XRP wedge identified by Magic, we get the following chart.
Additionally, and from the XRP/USD daily chart, we observe the following.
In summary, XRP has regained the $0.20 support zone and is still in the falling wedge MagicPoopCannon identified in mid-May. XRP’s price needs to maintain a value above $0.20 to inspire enough confidence from traders and investors to initiate a push up above the wedge.
However, as with all technical analysis of altcoins such as XRP, any violent move by Bitcoin to the downside will have a negative effect on the remittance coin. Therefore, keeping an eye out for Bitcoin is advisable and placing adequate stop losses to protect trading capital.