The aggregated crypto markets have faced significant downwards pressure over the past couple of days, marking a significant extension of the downwards momentum that was incurred earlier this year when Bitcoin tapped highs of $13,800 before posting a sudden and sharp retrace.
XRP has been particularly impacted by this bearishness and has now dropped below its key support at $0.20. In spite of this drop, analysts are noting that there is a chance that the support directly below XRP’s current price could be enough to send it surging higher.
XRP Down Nearly 10%, But Could Be Poised for a Strong Relief Rally
At the time of writing, XRP is trading down 8% at its current price of $0.195, which marks a notable decline from its daily highs of $0.22 that were set yesterday morning just prior to the massive drop that occurred concurrently with Bitcoin’s drop below $7,000.
$0.19 is where XRP fell to in late-November in the midst of its capitulatory downturn that came about as the entire markets faced an overwhelming sell-off.
This level did prove did be a strong level of support at this time, although it remains unclear as to whether or not it will hold strong as the markets express significant weakness.
DonAlt, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes now could be a decent opportunity to long XRP in spite of its perceivable weakness, as long as it holds above its current price levels for the week ahead.
“$XRP update: Did you seriously think you could escape fate? If this week closes above green I’ll probably punt a long here,” he explained.
In spite of DonAlt’s tempered bullishness, other analysts anticipate the embattled cryptocurrency to see further losses in the near-term.
Jacob Canfield, a popular cryptocurrency analyst on Twitter, recently noted that he has been swaying friends and family against investing in the crypto over the past couple of years, noting that it is not a good buy until it reaches between $0.10 and $0.15.
“I cannot tell you how many friends and family members I saved from buying $XRP in 2018 and 2019. It has to be in the hundreds. My answer of when to buy has always been *maybe* $.10 to $.15, but even then I would be cautious. This has to be my proudest achievement of 2019,” he said.
XRP’s reaction to this level will offer deep insight into XRP’s future price action, as any further downside could open the gates for significantly further losses.