Sorry bulls. On Tuesday, the cryptocurrency market continued to trend lower. XRP had it especially tough, posting the second-worst performance in the top ten digital assets of 6%, only underperforming Tezos.
While the asset is already down to $0.255, per data from CoinMarketCap — 25% lower than the ~$0.342 high seen just 10 or so days ago — a few analysts claim that XRP’s prospects are only looking harrowing from here, citing a number of technical analysis trends.
Analysts Fear the Worst for XRP After Price Slides Below Key Levels
Trader il Capo of Crypto recently shared the below analysis, showing that he expects for XRP to retrace towards $0.15 from $0.25, a drop of 40%, in the coming weeks.
The analyst backed his prediction by pointing to a number of factors, namely that it failed to break above a descending trendline during last week’s rally and lacks macro support levels until prices around $0.15.
There’s also the fact that XRP lost the key weekly support of $0.28 that may add to the bearish case for the cryptocurrency; indeed, the past few months have seen $0.28 act as a key inflection point for the cryptocurrency’s trends, making a loss of it a clearly bearish signal.
Also, a commentator that called XRP’s bottom at $0.17 and predicted the subsequent rally to $0.34 recently pointed out that XRP printed a “death cross on the weekly chart,” implying that further losses could be sustained in the coming weeks and months.
Not All Hope is Lost
Per previous reports from NewsBTC, XRP just days ago printed an extremely bullish signal: on its daily chart against the U.S. dollar, the 50-day simple moving average (red line) crossed above the 200-day simple moving average (green line) for the first time in months, suggesting bulls are in control.
Also, a custom indicator known as the IchiEMA has printed a buy candle on the weekly chart of the cryptocurrency. This signal was seen two weeks before the altcoin began its infamous surge at the end of 2017, during which the asset gained over 1,000% in under a month’s time, rallying from $0.20 to a price above $3.00.
Not to mention, analysts are expecting for Bitcoin to find support in the $8,000s, which would only mark a 10% or so drop from the current BTC price of $9,300. The leading cryptocurrency finding support in the $8,000s should prevent XRP from trending too far lower than it is now.
It seems that trading XRP remains a probability game that will require traders to weigh the bullish and bearish factors to try and come to a conclusive forecast.
Source – NewsBTC