XRP Begins Breaking Down as Technical Weakness Weighs Heavy
XRP has been flashing some signs of weakness throughout the past few days and weeks, with the selling pressure seen around the mid-$0.60 region proving to be too significant for the cryptocurrency to surmount.
Where it trends in the mid-term will depend largely on whether or not this level continues holding strong as resistance.
If it breaks above this level, then the crypto could soon see some massive momentum that creates another leg higher.
One trader spoke about XRP’s price action and market structure in a recent tweet, explaining that some serious warning signs seem to indicate downside could be imminent for the already embattled cryptocurrency.
This weakness comes despite the upcoming airdrop that has been widely looked upon as a bullish catalyst – a trend that may be emblematic of this recent rally being purely based on speculative trading activity.
There are a couple of technical levels that, if surmounted, could bolster its market structure and help lead it higher in the days and weeks ahead.
A failure to reclaim these levels would be dire and open the gates for serious downside.
XRP Struggles to Hold Above $0.60 as Selling Pressure Mounts
At the time of writing, XRP is trading up just under 6% at its current price of $0.58.
Although this marks a serious rebound from its overnight lows of $0.54, it is important to note that the cryptocurrency is still trading well-below its recent $0.90 highs.
The $0.60 level appears to be pivotal for the cryptocurrency, as breaks below it seem to tilt the balance into bears’ favor, whereas bouts of trading above it greatly favor bulls.
How it reacts to this level heading into the weekly close should provide insights into where it will trend in the weeks ahead.
Trader Claims the Token is in a Precarious Position
One trader explained in a recent tweet that XRP is currently in a precarious position, with the recent breakdown potentially spelling trouble for where it trends next.
He specifically pointed out that the break below its 200-day EMA on its 1-hour chart is particularly dire and may indicate its bullish market structure is about to degrade.
“Beginning to look like the worlds biggest shit coin again. 200 EMA on the 1 hour, lets see if we can hold it and get back in structure. If not rip XRP.”
Image Courtesy of NekoZ. Source: XRPUSD on TradingView.
The coming few days should shed some light on the long-term importance of the recent XRP rally, as any downtrend here could lead to a full erasure of its recent gains.
Featured image from Unsplash. Charts from TradingView.