XRP has been on a roller-coaster of a ride throughout the past few days and weeks, with the crypto randomly breaking out of a multi-year trading channel earlier this week that allowed its price to ascend as high as $0.90 on some exchanges.
The selling pressure here was significant, with many long-term holders using the pump as an exit opportunity.
It has struggled to gain any momentum since, which could be a sign that downside is imminent in the days and weeks ahead.
The downturn seen across the aggregated market may also be hampering its growth, as BTC and ETH have both plunged and caused most altcoins to post some serious losses.
One trader is now noting that there are some signs that XRP could be forming a long-term bottom. He points to it closing above a key high time frame level while potentially locking in a bullish divergence in the near-term.
For these potentially bullish factors to result in the cryptocurrency seeing any significant upside, bulls must hold it above one crucial level in the days ahead.
At the time of writing, XRP is trading down nearly 30% at its current price of $0.46. This marks a massive retrace from its recent highs of nearly $0.90 set earlier this week at the height of its parabolic uptrend.
Where the entire market trends in the mid-term may depend largely on Bitcoin trends next, as the selling pressure it has been facing led it to dip as low as $16,200 earlier today before it saw a sharp rebound.
XRP does appear to be finding some support around its current price levels. A continued bout of trading here could allow it to rally higher.
One trader explained in a recent tweet that XRP is showing some signs of technical strength.
He notes that the intense buying pressure that has been seen around its current price levels could confirm this as a high time frame support region.
“XRP: Wishful thinking that it closes this hourly green, locks in the div, and stays above key HTF level?”
Image Courtesy of Smokey. Source: XRPUSD on TradingView.
XRP will likely trade similarly to other top altcoins in the days and weeks ahead, making strength seen across BTC and ETH pivotal for the crypto to move higher.
Featured image from Unsplash. Charts from TradingView.
Published at Thu, 26 Nov 2020 21:00:53 +0000