XRP, Dogecoin, and Cardano have all been among the market’s best performers this year, with each one of them having led the altseason at one point or the other. However, thanks to Bitcoin’s overwhelming correlation with the rest of the market, these altcoins were depreciating at press time.
The last few months have been very volatile for XRP’s price action, to say the least. Back in December, when the SEC first charged Ripple Labs with illegal securities offerings, many expected the altcoin to lose value and drop to zero soon. However, that didn’t happen. On the contrary, the opposite has happened, with XRP recovering and surging on the charts to hit highs unseen in years.
The said surge was particularly prominent in the first few days of April, with the crypto hiking by 99% in just one week.
Since then, however, corrections have set in, with Bitcoin-fueled corrections encouraging XRP to depreciate by 42%.
The aforementioned corrections were underlined by the observations of the alt’s indicators as the Parabolic SAR’s dotted markers were above the price candles, while Chaikin Money Flow was holding steady near 0.20. This suggested that despite recent bearishness, capital inflows into the market have remained high.
Dogecoin, the industry’s most popular “meme-coin,” was arguably the most talked-about cryptocurrency over the past few weeks after the scale of its price surge on the charts pushed DOGE to the 3rd position on CoinMarketCap. While corrections had soon set in, at press time, the alt was still ranked 8th with a market cap of over $26 billion.
After recording a hike of over 200% in a matter of days, DOGE fell by almost 50% in less than a week, with the altcoin mimicking the movements of the world’s largest cryptocurrency.
Dogecoin’s technical indicators pointed to a solid trend reversal taking place as MACD line was closing in on a bearish crossover after an extended divergence, while Relative Strength Index was dipping towards the oversold zone as market sellers gained momentum.
According to Freetrade’s David Kimberley,
“People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up, and then they can sell off and make a quick buck.”
It has been less than 10 days since ADA hit its ATH of $1.55 on the charts. Since then, however, ADA’s price action has been a combination of stagnancy and price corrections, with the crypto now over 30% away from the aforementioned price level. Like XRP and Dogecoin, Cardano too fell on the back of the market-wide corrections, with the altcoin losing almost 30% of its value at press time.
The width of Bollinger Bands suggested that some price volatility may be incoming for ADA soon. On the contrary, Awesome Oscillator’s histogram pictured a fall in market momentum, with the same dipping under zero at the time of writing.
Here, it’s worth noting that while the month of February saw ADA climb on the back of a spectacular uptrend, the last 45 days or so have seen ADA trade more or less within the same price range.