XRP Shows Signs of Recovery While Dogecoin Struggles

XRP, the payments-focused cryptocurrency, has faced a 25% price drop this month, falling to $2.28 from its January peak of $3.40, according to TradingView and CoinDesk. However, Fibonacci retracement analysis suggests the token is far from out. The 38.2% retracement level, a key indicator for trend continuation, signals potential support for XRP’s next rally.

Historically, assets in an uptrend often pull back to the 38.2%, 50%, or 61.8% Fibonacci levels before resuming their climb. This suggests that XRP could see a recovery, especially with positive news on the horizon. Brazil’s securities regulator recently registered the country’s first spot XRP ETF, the Hashdex Nasdaq XRP Fund, entering its pre-operational phase. Meanwhile, U.S. regulators are reviewing applications for XRP ETFs, which could drive institutional adoption if approved.

In contrast, Dogecoin’s outlook appears bearish. The meme cryptocurrency has dropped below $0.21, retracing over 70% of its rally from October lows near $0.10 to December highs of $0.48. In technical analysis, a retracement beyond 61.8% often signals the end of a primary trend, raising concerns over further losses.

With XRP gaining institutional interest and finding support at key technical levels, it may have room to rebound. However, Dogecoin’s deep retracement suggests a tougher road ahead. Traders will be closely watching ETF developments and market trends to gauge the next move.