XRP price falls, but Newsbit analyst sees pattern that previously yielded 70% profit
Many cryptocurrencies have been struggling for a while now and XRP is no exception. This is how the price of Ripple's crypto stands now.
In recent days, the XRP price has been consolidating around the level of 1.25 dollars. With a volume that is far from searchable, traders clearly look the cat out of the tree. Technical analyst Erik Juffermans of Newsbit is investigating how the popular cryptocurrency is currently doing.
The XRP price rose twice in August and September to a peak of more than 1.60 dollars. With a current exchange rate of about 1.25 dollars, that increase has largely been surrendered.
We have seen a clear downward trend since then and last Thursday the price even lost the $1.30 mark. The $1.25 level is now holding. This level is also the bottom of the wick on 16 September. However, a rapid recovery as it was then is now lacking.
According to Juffermans, the assignment is simple for the bulls: a recapture of 1.30 dollars and a breakthrough of the downward trend line. If that happens, we can go bullish again.
If this doesn't happen, we look down. Around $1.15, we see a clear support zone for buyers to step into, according to the analyst.
When it comes to price movements, XRP obviously depends on the broader sentiment within the market and especially on Bitcoin (BTC). For example, if the broader correction continues, it will be difficult for XRP to recapture $1.30.
Then there is another striking resemblance to the price earlier this year. In the summer, we saw a similar pattern as now, and then the price rose by 70 percent towards 1.70 dollars.
Of course, this is not a guarantee of a repeat. However, it is a reminder that a breakdown is not always bearish. It is precisely such bearish moments that often turn out to be good entry points afterwards.