XRP’s rough year just got a whole lot rougher, as it appears that its recent downturn has led it to break below a key support level against its Bitcoin trading pair that had previously been holding strong.
The break below this level has led it to visit another key support region that is the only thing stopping it from plummeting to fresh post-2017 bull run lows, which some analysts believe is a strong possibility in the near-term.
XRP Climbs from Intraday Lows, But Further Losses May Be Imminent
At the time of writing, XRP is trading up nearly 3% at its current price of $0.194, which marks a notable climb from its daily lows of $0.185 that were set earlier this morning concurrently with Bitcoin’s movement down towards $7,100.
XRP has been facing an insurmountable amount of selling pressure in recent times, which has caused it to plummet down to lows of $0.18 just in the past few days, which marked the lowest levels the cryptocurrency has traded at in the time since its meteoric bull run in late-2017.
This price action has been closely mirroring that of Bitcoin, which recently set fresh multi-month lows of $6,400 before incurring a massive about of buying pressure that sent it surging up to highs of $7,600.
The momentum that this rally sparked affected nearly all major altcoins, although buyers have since shown signs of faltering as the momentum slows.
While looking at XRP’s BTC trading pair, it is important to note that it just recently broke below a critical technical support level and is currently nearing one of its last major support levels that is stopping it from incurring significantly further losses.
Jacob Canfield, a popular cryptocurrency analyst on Twitter, spoke about these key support levels in a recent tweet, noting that any further downside could spark a bout of capitulation that sends the crypto reeling lower.
“A lot of people focus on XRPUSD, but XRPBTC just recently broke the weekly 20MA. It tried to hold it, but failed to this week. A key pivot level for $XRP on the weekly is the 2350 zone. If this breaks and closes, I would look for potential support much lower,” he noted while pointing to the chart seen below.
https://twitter.com/JacobCanfield/status/1208085700769386496
It is highly likely that Bitcoin’s near-term price action will be the guiding force that determines whether or not XRP holds above this key support level, as any further BTC downside could force XRP to break below this support.