XRP was once again rejected after attempting to break above its near-term resistance level at $0.27, and its current price action is closely mirroring that of Bitcoin and other major altcoins.
Analysts are now noting that XRP has not yet established a long-term bottom, which means that it is likely to drop lower in the coming weeks and months before it finds a long-term support level that allows it to reverse its recent downtrend.
XRP Faces Increased Selling Pressure as Further Losses Grow Likely
At the time of writing, XRP is trading down just under 1% at its current price of $0.268, which marks a slight drop from its 24-hour highs of over $0.27.
Importantly, $0.27 appears to have become XRP’s near-term resistance level, as each visit to this level over the past several days has been followed by a slight rejection that leads it lower.
Ever since the crypto broke below its previous support level at $0.30, it has consistently found support around $0.25, which signals that it may currently be caught in a trading range between $0.25 and $0.27. This range may hold strong in t he near-term as long as Bitcoin doesn’t make any major movements.
Chonis Trading, a popular crypto analyst, spoke about XRP in a recent tweet, explaining that he believes it has not yet found a long-term bottom, and may face a significantly deeper pullback in the near-future.
“$XRP – why do people keep calling bottoms on #ripple?… not even close,” he said while pointing to the chart seen below.
Trading Sentiment on Massive Forex Platform May Spell Trouble for Major Cryptos
Nik Patel, a popular crypto analyst on Twitter, explained in a recent tweet that the sentiment that forex traders on IG – a major trading platform – currently have with regards to the major cryptocurrencies, including XRP, may spell trouble for their near-term price action.
“Client sentiment on IG for $BTC $ETH and $XRP looks like a disaster waiting to happen,” Patel noted.
Because overleveraged long or short positions on any single asset or market are typically viewed as a counter indicator by most savvy investors, the fact that 97% of XRP traders on IG are currently long on the crypto may support the notion that further losses are imminent.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.