XRP Posts Classic “Bearish Retest” Pattern as Analysts Eye Lower Lows
- XRP has been able to post some notable gains throughout the past couple of days
- Its recent upswing has even come about as Bitcoin and Ethereum both reel lower as a result of their latest rejections
- Despite being laggard throughout the early phases of this rally, the embattled crypto is now looking strong
- Analysts are still cautious about its mid-term outlook, however, as this latest upswing could simply mark a “bearish retest” of the upper boundary of a long-held trading range
- If this is the case, then it may still see another set of lower lows before it can incur a stable uptrend
XRP’s price has largely been stagnant throughout the past year, struggling to match the momentum seen by both Bitcoin and Ethereum.
This has whittled away at its investor bases’ sentiment, while also damaging its technical structure.
Despite this, the cryptocurrency was able to make a strong push higher over the past few days that led its price from lows of $0.23 to highs of $0.35.
This rally may not be as positive as it seems, however, as one analyst is noting that it may simply be a bearish retest that is followed by further downside.
XRP Posts Breakout Rally as Bulls Try to Hold It Above $0.30
At the time of writing, XRP is trading up over 6% at its current price of $0.305.
Yesterday, bulls propelled the cryptocurrency as high as $0.35 before it lost its momentum and declined slightly.
From this point, the cryptocurrency fell to lows of $0.27 before buyers stepped up and “bought the dip.”
XRP has since been consolidating around its current price levels, which comes as Bitcoin also hovers within the lower-$11,000 region.
One analyst explained in a recent tweet that despite the strength of this uptrend, the token has yet to retest its 100-day and 200-day moving averages yet.
He notes that this may be required before it can push higher.
“Great surge here. However, preferably a retest of the 100-Day and 200-Day MA is required for continuation here.”
Image Courtesy of Michaël van de Poppe. Chart via TradingView.
Why It May Be Too Soon to Flip Bullish on the Token
Despite its overt strength at the present moment, analysts are saying that XRP could be simply posting a bearish retest.
One trader noted that it is currently at the top of a historical trading range, and it may see one final capitulatory downturn before it can push higher.
“Ripple / XRP – Until proven otherwise, this is a bearish retest on the XRP/BTC chart of a range that we previously broke down from. I am going with the assumption that XRP has one final capitulation lower before it really outshines Bitcoin.”
Image Courtesy of Calmly. Chart via TradingView.
How it trends in the coming few days should provide insight into the validity of this notion.
Featured image from Unsplash. Charts from TradingView.