The aggregated crypto markets have been experiencing tremendous volatility as of late, and much to the chagrin of bulls, much of this volatility has favored bears. This is especially clear while looking towards XRP, which has been one of 2019’s worst performing cryptocurrencies.
Analysts are now noting that XRP may be poised for significantly further downside in the near-term, with one analyst setting a potential downside target at $0.08.
XRP Nears Critical Support Level as Analysts Predict Further Downside
At the time of writing, XRP is trading down 2% at its current price of $0.215, which marks a notable decline from its daily lows of just under $0.21 that were set yesterday.
The crypto’s bearish price action in recent times first began in early-November when it spiked to highs of over $0.31 before beginning its slow grind down to its current price levels.
This sell-off reached a boiling point in late-November when XRP plummeted to lows of under $0.20 during a capitulatory movement, which came about concurrently with Bitcoin’s drop to lows of $6,500 that have since appeared to have marked a potential mid-term bottom.
After tapping these lows, XRP has been caught within a firm trading range between $0.21 and $0.23, finding support at its lower boundary and resistance at its upper boundary.
In the near-term, analysts are noting that the embattled cryptocurrency has broken below the bottom range of a previous support level that has held strong for a long period of time, and its next level of major support exists significantly lower than its current price levels.
Jonny Moe, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, pointing to a chart seen below that shows the possibility that XRP could retrace another 67% from its current price levels until it finds strong support around $0.08.
This type of movement would be devastating for XRP and would likely only come about as a result of major weakness in the aggregated crypto markets.
If Bitcoin does see further near-term downside and breaks below its key support levels at $7,000 and $6,500 respectively, it may see significantly further downside that sparks major downwards momentum in the aggregated crypto markets that has a grave impact on major altcoins like XRP.