XRP has been on a roller coaster ride for the past few days and weeks, and crypto accidentally broke out of a multi-year trading channel earlier this week, which allowed the price to rise as high as $ 0.90 on some exchanges.
The pressure to sell was considerable here, as many long-term owners used the pump as an exit option.
It has since struggled to gain momentum, which could be a sign that a downtrend is imminent in the days and weeks ahead.
The downturn in the aggregate market could also hamper its growth as both BTC and ETH have declined and most altcoins have seen some serious losses.
A trader now notes that there are some signs that XRP may hit a long-term low. It suggests that it is closing above an important timeframe, while a bullish divergence may appear in the short term.
In order for these potentially bullish factors to cause the cryptocurrency to see a significant uptrend, bulls will need to keep them above critical levels in the days ahead.
XRP struggles to gain momentum when the market drops
At the time of writing, XRP is trading nearly 30% from its current price of $ 0.46. This is a massive setback from recent highs of nearly $ 0.90, which were made earlier this week at the height of the parabolic uptrend.
Where overall market trends might depend largely on Bitcoin trends next in the medium term, selling pressures caused it to drop to $ 16,200 earlier today before rebounding sharply.
XRP seems to be finding support in terms of the current price level. Sustained trading here could allow it to move higher.
Here’s why the crypto is showing signs of strength
A dealer explained In a recent tweet, XRP is showing some signs of technical strength.
He notes that the intense buying pressure seen in relation to current price levels could confirm this as a region with high timeframe support.
“XRP: Wish it would close that hourly green that includes Div and stay above the HTF key level?”
Image Courtesy of Smokey. Source: XRPUSD on TradingView.
XRP is likely to trade similarly to other top altcoins in the coming days and weeks, making the strength of BTC and ETH crucial in keeping crypto moving higher.
Featured image from Unsplash. Charts from TradingView.