After months of ups and downs, the price of XRP fell below $2 this month for the first time in seven months, breaking towards the annual support level of $1.79. Although there has been some recent recovery, momentum remains low and the likelihood of a sustained recovery decreases with each new decline. As altcoins continue to struggle, market analysts have outlined two main directions prices could go in, considering bullish and bearish scenarios.
XRP bull incident
A significant change in momentum is needed from here for the price of XRP to continue rising. First, the price must first break the resistance at $2.12 and then rise to test further resistance at $2.18. If the altcoin breaks this resistance with momentum, cryptocurrency analyst Melikatrader believes it could resume its upward trend.
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However, a lot of development is needed for altcoins for this to happen. The cryptocurrency analyst outlines three key things that need to happen for the cryptocurrency to launch another surge to regain the $2.35-$2.45 level.
The first is that buyers must regain control of the market. Over the past two months, it has become a seller-driven market, with each pump selling harder than before. So the only way for a large-scale recovery is for buyers to become the majority again.
Next on the list are the remaining resistances to confirm support. Once the resistance mentioned above breaks and turns into support, the next phase can begin. Last but not least, XRP price breaks out of the descending trend line, with a target of $2.35-$2.45. Only then will the pump continue to operate.
How Bears Can Be Controlled
Like bulls, XRP bears are still active in the market and could regain control over the altcoin. The first thing cryptocurrency analysts point out is that the price is likely to fall if it fails to reclaim $2.12-$2.18, which means the price will be rejected in the S&D zone and resistance will remain.
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In this case, it means there are several things going on. The first is that momentum is moving in a downward direction as sellers become the majority. Once suppression begins, the price is likely to fall back below $2 and retest the recent lows of $1.90-1.92. The analyst explains that this “could lead to a new cycle of weakness.”
Featured image by Dall.E, chart by TradingView.com