After months of ups and downs, XRP price fell below $2 this month for the first time in seven months, breaking towards annual support at $1.79. Although there has been some recovery recently, momentum remains low and the chances of a sustained recovery decrease with each new dip. As altcoins continue to struggle, one market analyst has outlined two main directions prices could go, based on bullish and bearish scenarios.
The eloquent case for XRP
A major momentum shift will be needed from here for XRP price to continue rising. First, the price needs to break through the resistance at $2.12 and then move forward to test further resistance at $2.18. If the altcoin breaks through these resistance levels with momentum, cryptocurrency analyst Merica Trader believes it could resume its uptrend.
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However, altcoins will need a lot of development for these to become a reality. Cryptocurrency analysts have outlined three key things that need to happen for the cryptocurrency to begin a further rally to regain the $2.35 to $2.45 levels.
First of all, buyers need to take back control of the market. The past two months have been a seller’s market, with each pump selling harder than the last. So the only path to a significant recovery will be for buyers to start becoming the majority again.
Next on the list is remaining resistance to confirm support. Once the above resistance is broken and turns into support, we can begin the next phase. Last but not least, the XRP price breaks out of the downtrend line, with a target at $2.35 to $2.45. Only then will the pump continue to work.
How can the bears take control?
Similar to the bulls, XRP bears are still active in the market and could regain control of the altcoin. The first thing this crypto analyst points out is that if the price rejects the S&D zone and fails to recover $2.12-$2.18, that is, if the resistance holds, the price is likely to fall.
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When something like this happens, it can mean a number of things are happening. The first is that momentum is trending toward decline as sellers become the majority. Once suppression begins, prices are likely to plunge back below $2 and retest recent lows of $1.90 to $1.92. This “could lead to weakness in the new cycle,” the analyst explained.
Featured image from Dall.E, chart from TradingView.com
