XRP has been gravely impacted by the recent bearishness seen within the aggregated crypto markets, as it is one of the only major altcoins that has set fresh post-2018 crash lows during the recent downtrend seen throughout the markets.
Importantly, one analyst does believe that the cryptocurrency will see a trend shift in the near-term, with an imminent bull rally potentially being fueled by the ongoing accumulation phase that he believes the cryptocurrency is caught within.
XRP Finds Support at $0.23, But Will It See Further Downside?
At the time of writing, XRP is trading up marginally at its current price of $0.235, which marks a slight climb from its daily lows of under $0.23 that were briefly set during its latest sell-off, but the dip below this price level was quickly bought up by bulls, confirming it as a level of support.
XRP is currently trading down significantly from its monthly highs of over $0.30 that were set in early-November, and its inability to stabilize above this level – coupled with the bearishness seen within the aggregated crypto markets – perpetuated its recent downtrend.
In spite of this recent bearishness, one analyst is now noting that he believes XRP is current caught within an accumulation phase that will be followed by a major breakout that sends it catapulting higher.
D.I.Y Investing spoke about this in a recent tweet, saying:
“Identical to the last cycle, we get a similar pattern before our breakout. Rounded bottom formation just below descending resistance with volume breakouts occurring. Finally, we get our trend reversal!”
As for what will come after this, the same analyst believes that this phase is followed by a “spring loaded breakout” that sends the crypto surging higher, once it breaks above its descending resistance level and flips it into a support level.
“This takes us to our final phase in the market cycle. This also takes us to current valuation which is anyone’s best guess where we go next. What I see from a TA perspective is the potential for one more low before we get our, ‘Spring Loaded Breakout’ into price discovery,” he explained.
In order for this bullish sentiment to be validated, it will likely require Bitcoin to incur some bullishness, as it will be nearly impossible for XRP to incur any meteoric upwards momentum under the current market conditions.