XRP – the token closely associated with Ripple – has seen faltering momentum as of late, with its community dissipating as the company struggles to garner widespread adoption for the token.
It does remain loosely correlated to Bitcoin’s price action, but it has been failing to garner any significant momentum as it remains below a multi-month resistance level.
This has caused it to severely underperform both Bitcoin and most of its peers throughout the latest market-wide upswing, which could indicate that further downside is imminent in the near-term.
One trader is noting that the cryptocurrency’s lack of strength during any upside movements has come about due to it being “crippled,” indicating that further downside is imminent.
He is now looking to exit his XRP positions at its first resistance level, which sits just above where it is currently trading at.
Once this resistance is hit, the chart he put forth suggests that a move down towards its multi-month lows within the lower-$0.20 region is imminent.
XRP Struggles to Gain Momentum as Selling Pressure Ramps Up
At the time of writing, XRP is trading up marginally at its current price of $0.25.
This is a slight rise from its weekly lows of over $0.23 set during its latest dip, but it is important to note that this 10% rise marks a serious underperformance of many of its peers.
Throughout the past month, XRP has struggled to garner any sustainable momentum as it ranges between $0.22 and $0.26. The upper boundary of this range has been quite intense, with each visit here sparking harsh rejections.
Unless XRP shatters the selling pressure between $0.26 and $0.30, it may continue seeing technical weakness.
Analyst Claims the Embattled Token is “Crippled” Due to Lack of Buying Pressure
He now is looking to offload his long positions as soon as the crypto reaches its next key resistance level.
“Stupid thing has moved like 2% while everything moved like 10%. I…hate this <a class="wpg-linkify wpg-tooltip" title="
CoinA coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin with a passion and looking to sell the first resistance. Everything moves exponentially compared to XRP. Ripple is crippled.”
Image Courtesy of Loma. Chart via TradingView.
Because there are no immediate catalysts for XRP to see any intense upwards momentum, it may continue severely underperforming Bitcoin and the aggregated crypto market.
Featured image from Unsplash. Charts from TradingView.