XRP has shown some signs of weakness in the past few days and weeks, with selling pressures in the middle of the $ 0.60 region proving too significant for the cryptocurrency to break through.
Where there are medium-term trends will largely depend on whether or not that level remains strong as a resistance.
If it breaks above that level, the crypto could soon see massive swings creating another leg higher.
A trader spoke recently in a tweet about the price development and market structure of XRP, stating that some serious warning signs suggest that a disadvantage for the already competitive cryptocurrency could be imminent.
This weakness comes despite the impending air drop, widely viewed as a bullish catalyst – a trend that may symbolize that this latest rally is entirely based on speculative trading activity.
There are some technical levels that, if overcome, could strengthen your market structure and help guide you higher in the days and weeks to come.
Failure to regain these levels would be terrible and would open the gates to serious drawbacks.
XRP struggles to stay above $ 0.60 as selling pressure mounts
At the time of writing, XRP is trading just under 6% at its current price of $ 0.58.
While this represents a serious rebound from its overnight lows of $ 0.54, it’s important to note that the cryptocurrency is still trading well below its recent high of $ 0.90.
The $ 0.60 level appears to be critically important to the cryptocurrency, as breaks below it seem to lean the balance in favor of the bears while trade struggles above it greatly favor bulls.
How it reacts to this level towards the end of the week should give some indication of where it will develop in the coming weeks.
The trader claims the token is in a precarious position
A trader explained in a new tweet The XRP is currently in a precarious position.
He pointed out that the break below the 200-day EMA on the 1-hour chart is particularly bad and may indicate that the bullish market structure will soon deteriorate.
“I’m starting to look like the biggest shit coin in the world again. 200 EMA in 1 hour, let’s see if we can hold it and get back into the structure. If not, rip XRP. “
Image Courtesy of NekoZ. Source: XRPUSD on TradingView.
The days ahead should shed some light on the long-term significance of the recent XRP rally as any downtrend here could result in a complete obliteration of recent gains.
Featured image from Unsplash. Charts from TradingView.