The past few weeks and months have been turbulent for the aggregated crypto markets, with Bitcoin leading most major altcoins to erase virtually all the gains that were incurred throughout the first half of the year. The recent downtrend has been particularly impactful for XRP, which is currently trading just a hair above its recently established post-2017 bull run lows.
The ongoing bout of sideways trading that XRP is currently experiencing may soon come to an end, as one well-respected technical indicator is pointing to the possibility that a massive movement is imminent.
The question is, will this next major movement favor bulls or bears?
Next XRP Movement May Favor Bulls, But Macro Outlook Remains Grim
While looking at XRP’s weekly price action, the cryptocurrency has seen a notable sell-off that has sent it down from highs of nearly $0.24.
Over a three-month period, it grows crystal clear as to just how firm the token’s current downtrend is, as it has plummeted from highs of nearly $0.32 that were set in early-November concurrently with Bitcoin’s rapid surge to highs of $10,600.
Because the XRP is currently one of the few major cryptocurrencies that is trading down over a year-to-date period, investors are keen on it incurring a relief rally that allows it to put some distance between its recently set post-2017 lows of just under $0.20.
Currently, it does appear that XRP is close to making a major movement, although it remains unclear as to whether it will favor buyers or sellers.
“$XRP #Ripple daily BBs have not been this tight since March, AKA volatility coming,” Big Cheds, a popular cryptocurrency analyst on Twitter, noted in a recent tweet while pointing to the chart seen below.
— Big Cheds (@BigCheds) December 14, 2019
Cryptomer, another popular cryptocurrency analyst on Twitter, explained in a tweet from last week that XRP has found notable buying pressure around $0.21, with this buying pressure in this level potentially sparking a short-term uptrend that sends it up to $0.25.
“Buying interest kicked in around $0.21, a bounce to $0.25 seems reasonable, if $XRP catches on fire maybe a re-test of $0.285 since it gapped down hard. Here is the 12hr VPVR, and HTF fib retracement levels on the log scale. I’m trading the bounce rn, then I’ll re-evaluate,” he noted.
Buying interest kicked in around $0.21, a bounce to $0.25 seams reasonable, if $XRP catches on fire maybe a re-test of $0.285 since it gapped down hard.
Here is the 12hr VPVR, and HTF fib retracement levels on the log scale. I'm trading the bounce rn, then I'll re-evaluate. pic.twitter.com/SdmdJT6mq6
— CƦYP₮ΘɱΞƦ (@Crypt0mer) December 8, 2019
As the weekend drags on, it is possible that analysts and investors alike will soon gain greater insight into just how long the ongoing downtrend will last.