Bulls Beware: XRP Could See a Bloody Selloff to $0.12 as Market Structure Degrades

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XRP has seen mixed price action throughout the past several days. It recently lost the key support it had established at $0.20, subsequently seeing a sharp decline that led it down to lows of under $0.19.The cryptocurrency’s buyers have ardently defended against it seeing any significant near-term downside, and it now appears that they are attempting to recapture its position above $0.20.One analyst is noting that its mid-term outlook remains rather bleak.He explains that the recent plunge has caused it to break its market structure, with this opening the gates for a sharp and sudden decline down towards its range lows at $0.125.XRP Enters Consolidation Phase as Buyers and Sellers Reach an ImpasseAt the time of writing, XRP is trading up just under 2% at its current price of $0.198.The crypto is currently in the process of attempting to reclaim its previous support at $0.20, and this climb is occurring as Bitcoin and most other altcoins also inch higher.It is important to note that the token does appear to be caught within a bout of consolidation, as it has failed to garner any decisive momentum in either direction in the time following its latest selloff.This decline led it down from highs of nearly $0.23 to lows of under $0.19. In the time since, it has been trading sideways around its current price level.One well-respected analyst and trader is now noting that he anticipates the third-largest cryptocurrency to see some immense bearishness in the near-term.He explains that this technical weakness is rooted in the crypto’s recent break below its 200-day moving average.“Beginning with XRP/USD, I am particularly interested in the highlighted area from which market structure has recently broken and turned bearish. This break and turn occurred from an important area also: the 200-day moving average,” he explained.Image Courtesy of Nik PatelThis level is a critical trend-defining moving average that has historically offered investors with significant insight into which direction an asset will trend in during a mid-term timeframe.Here’s How Low This Technical Weakness Could Lead the Token As for what this shifted market structure could mean for XRP’s price action in the near-term, the same analyst notes that the outlook is rather dire.He explains that he expects a swift move to under $0.175, with this break opening the gates for a capitulatory movement that sends it to its range lows of $0.125.“If we start to see price reject from a retest of the underside of this area, I am expecting a swift move below $0.175 and then a retest of the range low at $0.125.”This potential path forward could be expedited if Bitcoin sees any significant near-term decline.Featured image from Unplash.

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