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.
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 $0.27. This range may hold strong in the near-term as long as Bitcoin doesn’t make any major movements.
Chonis Trading, a popular crypto analyst, spoke about XRP in a recent tweet, explaining that he believes it has not yet found a long-term bottom, and may face a significantly deeper pullback in the near-future.
“$XRP – why do people keep calling bottoms on #ripple?… not even close,” he said while pointing to the chart seen below.
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.