Payments-focused cryptocurrency XRP is down but not out, whereas the outlook for dogecoin (DOGE) appears grim, based on an analysis of Fibonacci retracement levels.
XRP reached a peak of $3.40 in mid-January and has since entered a downtrend, with the price dropping 25% this month to $2.28, according to data from TradingView and CoinDesk.
While the sell-off has been steep, it corresponds to only a 38.2% Fibonacci retracement of the rally that started at Nov. 4’s low of 49.5 cents through the Jan. 16 high of $3.40. A retracement is a drop from the principal trend.
That’s positive news for XRP bulls, as that level, along with the 50% and 61.8% ratios, indicates potential areas for the price to resume its previous trend, according to the CME’s explainer.
Trends often pull back to these levels before initiating larger rallies. That means XRP bulls have reason to be optimistic about potential gains ahead.
Moreover, there has been some…
