XRP May Explode Higher After “Destroying” a Macro Downtrend Line
XRP is currently hovering around the key $0.30 region as its buyers attempt to stop it from breaking below this crucial support level.
This slight decline comes as the aggregated crypto market begins facing heightened selling pressure, although it has not been enough to invalidate the market’s macro strength.
Analysts are now noting that XRP could still be well-positioned to post large gains in the coming weeks, as it was recently able to smash through a year-long descending trendline.
One trader is noting that the break below this level has opened the gates for a rally up towards $0.475. If this level is broken above, the analyst believes it could then target a move towards $1.00.
In order for this possibility to be validated, it is imperative that Bitcoin and the aggregated crypto market remain technically strong, as any sharp downturn will place significant pressure on XRP.
XRP Struggles to Maintain Above Key Support Despite Recent Strength
At the time of writing, XRP is trading down 1% at its current price of $0.30. This marks only a slight decline from where it has been trading at in recent days.
It is a strong possibility that the cryptocurrency will continue seeing further downwards pressure as Bitcoin begins declining into the mid-$11,000 region.
If XRP does lose the support it has at $0.30, its next region with notable buying pressure is around $0.27. If this level is broken below, it may freefall until it reaches $0.23.
One popular trader explained in a recent tweet that he believes XRP’s may be overheated in the short-term and poised to see some slight downside.
He offered the below chart, showing the levels he is currently watching.
Image Courtesy of Loma. Chart via TradingView.
As seen above, $0.23 is now XRP’s “bedrock” support level. If it breaks below this, its entire uptrend will be invalidated, and it could be prone to seeing major losses in the days and weeks ahead.
This Recent Trendline Break May Boost Its Mid-Term Outlook
Despite showing some signs of near-term weakness, a recent break above a year-long descending trendline may ultimately spark a move up towards $0.475 – according to one analyst.
“XRP: Absolutely destroyed it’s downtrend line with conviction. Close this week above .30 and look for .475 next imo most important spot ever for XRP. Above that .93-.97, 1.09, and 1.23 are all possibilities,” he explained.
Image Courtesy of Pentoshi. Chart via TradingView.
How XRP trends as the aggregated market shows some signs of weakness should offer insight into the strength of its buyers.
Featured image from Unsplash. Charts from TradingView.