Analysts Expect XRP to Plummet After Breaking Year-Long Trading Range
- XRP is once again seeing a severe underperformance of Bitcoin and many of its other peers
- The cryptocurrency has failed to post any notable rally today despite that seen by Bitcoin and the aggregated crypto market
- Analysts are now noting that it could be well-positioned to see some major downside in the weeks ahead as the effects of its year-long breakdown begin to reach a boiling point
XRP has been hovering around the $0.20 for the past several days, and Bitcoin’s massive $1,000 surge to highs of $10,000 earlier today was not enough to help the embattled token decisively break above this level.
It now appears that the cryptocurrency could be well-positioned to see a major downswing in the days ahead.
One respected analyst is noting that the crypto recently broke below a year-long trading range that had previously held strong, potentially leading it to decline 30% against its BTC trading pair.
Other analysts agree with this assessment, as one recently noted that he is closely watching for a sharp decline down to $0.12.
XRP Struggles to Gain Momentum as It Underperforms Aggregated Market
At the time of writing, XRP is trading up 1% at its current price of $0.20.
It is important to note that these tempered gains seen against its USD trading pair are being overshadowed by the 5% loss it has incurred against Bitcoin today.
If the token is able to flip $0.20 as support and gain some greater momentum, its first heavy resistance level will likely exist at $0.22.
This happened to be the level at which it began finding some significant support before the capitulatory decline last weekend that led it down to lows of $0.19.
Mohit Sorout – a founding partner at Bitazu Capital – spoke about XRP in a recent tweet, explaining that it recently broke below a year-long trading range.
This technical development has led him to flip short from 0.000022 BTC, with a roughly 30% target of 0.000015 BTC by June.
“XRP broke down from a year long range. Short from 2200. Wouldn’t be surprised to see this at 1500 before June ends,” he explained.
This Trader Thinks the Crypto Could Decline as Far as $0.125
Sorout isn’t the only one who is targeting some immense downside for XRP.
In a recent blog post, respected trader Nik Patel explained that he is watching for a swift move to below $0.175, with this opening the gates for a decline to $0.125.
“This break and turn occurred from an important area also: the 200-day moving average. 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.”
Featured image from Unplash.