XRP Holds Resilience Despite Price Drop; DOGE's Outlook Bleak

XRP, the payments-focused cryptocurrency, has experienced a significant drop in price, but it remains resilient, while the outlook for dogecoin (DOGE) appears bleak, according to an analysis of Fibonacci retracement levels.

XRP reached its peak of $3.40 in mid-January and has since entered a downtrend, with the price dropping by 25% this month to $2.28. Despite the steep sell-off, it corresponds to only a 38.2% Fibonacci retracement of the rally that started at the low of 49.5 cents on Nov. 4 and reached the high of $3.40 on Jan. 16. This level, along with the 50% and 61.8% ratios, indicates potential areas for the price to resume its previous trend, providing optimism for XRP bulls.

In addition to the positive Fibonacci retracement levels, there has been some positive news flow regarding XRP recently. On Monday, ETF.com reported that Brazil's securities regulator had registered the first spot XRP exchange-traded fund (ETF), the Hashdex Nasdaq XRP Fund, which entered a pre-operational phase with Brazil's Comissão de Valores Mobiliários (CVM). U.S. regulators are also reviewing applications for XRP ETFs, which could accelerate institutional demand for XRP if the uptake of bitcoin (BTC) and ether (ETH) ETFs is any guide.

In contrast, the outlook for dogecoin (DOGE) appears grim. The world's largest meme cryptocurrency by market value has dropped below 21 cents, retracing more than 70% of the rally marked by October lows near 10 cents and a high of 48.4 cents in December. This drop is significant because a primary trend is considered to have ended when a retracement exceeds the 61.8% level, indicating a potential end to DOGE's uptrend.