XRP’s price has been rejected in critical positions recently as the asset continues to be affected by a variety of factors, from legal to general market sentiment.
XRP price is in danger of falling! – Here’s why!
Indeed, crypto trading expert Michaël van de Poppe suggested that XRP faced stiff resistance at the $0.37 level, and based on the recent move, the preference is to see the token recover the $0.343 level relatively quickly.
However, according to Poppe, a significant amount of liquidity to the downside could be taken if the price does not bounce back. He compared the current situation with XRP to the performance of Bitcoin (BTC).
On this line, he pointed out that investors should keep their eyes on the $0.265 level, which is seen as an important support level for XRP.
“This seems a bit odd as we saw a strong rejection at $0.37. I’d rather see $XRP recover the $0.343 level relatively quickly; otherwise, taking a ton of liquidity is on the downside (comparable to Bitcoin). Trader, big support at $0.265” said.
XRP candlestick chart. Source: TradingView
It is worth noting that XRP has been trading sideways in recent weeks, as the case between Ripple and the Securities Exchange Commission (SEC) failed to find any bullish triggers. Additionally, the asset is also affected by the effects of the collapse of the FTX crypto exchange.
XRP potential for bullish reversal
Elsewhere, a cryptocurrency analyst on TradingView alias TradingShot highlighted that XRP could return to a bullish trend if it breaks above lower highs in 2021.
In this case, the analyst stated that the bullish trajectory could be reactivated if the token rises above the 0.618 Fibonacci level.
“Long term, we can only expect XRP to return to the uptrend if it rises above the Lower Tops of 2021 and ideally the 0.618 Fibonacci level where it failed on September 23, thus making the first High Top in more than 1.5 years” said the analyst.
XRP price analysis chart. Source: TradingView
The analyst added that XRP has been “flying low” since the collapse of the FTX crypto exchange.
XRP price analysis
Currently, XRP is changing hands at $0.34, correcting over 2% in the last 24 hours. On the weekly chart, the token is down over 3%.
XRP seven-day price chart. Source: Finbold
Elsewhere, XRP’s recent rejections delayed the asset’s possible rally to the $0.40 resistance position, which acts as a crucial level to reclaim $0.50.
Currently, the machine learning algorithm at PricePredictions predicts that the digital currency will enter the new year on a downward note, trading at $0.33 on January 1, 2023.
Meanwhile, the ongoing SEC litigation remains the most fundamental aspect of XRP’s price prediction. Indeed, the outcome of the lawsuit will likely have both a bearish and a bullish sentiment on the asset.
Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.
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