After a few months of ups and downs, the price of XRP had fallen below $2 this month for the first time in seven months, breaking towards its yearly support of $1.79. While there has been some recovery recently, momentum remains low and the chances of a sustained recovery diminish with each new decline. As the altcoin continues to struggle, one market analyst has outlined the two main directions the price could take, given the bullish and bearish scenarios.
The bull case for XRP
For the price of XRP to continue rising, a major change in momentum would need to occur from here. On the one hand, the price will first have to break the resistance found at $2.12 and then advance to test additional resistance at $2.18. In the event that the altcoin breaks these resistances with momentum, crypto analyst Melikatrader believes it could resume its uptrend.
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However, for this to happen, a number of developments would need to occur for the altcoin. The crypto analyst outlines three important things that need to happen for the cryptocurrency to start another rise and reclaim the $2.35-$2.45 level.
The first is that buyers would need to regain control of the market. For the past two months, it’s been a seller’s market, with each pump selling harder than the last. Therefore, the only way to achieve a significant recovery would be for buyers to return to the majority.
Next on the list is the rest of the resistances to confirm support. Once the resistances mentioned above are broken and become support, then the next phase can begin. Last but not least, XRP price will break out of the descending trend line, targeting between $2.35 and $2.45. Only then will the bomb continue.
How bears can take control
Like the bulls, the XRP bears are still very active in the market and could regain control of the altcoin. The first thing the crypto analyst points out is that if the price is rejected from the S&D zone and fails to recover between $2.12 and $2.18, which means that the resistance holds, then the price is likely to fall.
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Should this happen, it would mean that several things are happening; The first of these is that momentum is moving towards a decline as sellers become the majority. Once the squeeze begins, the price is likely to drop back below $2 and decline again to retest its recent lows of $1.90-$1.92. This, the analyst explains, “could lead to a new cycle of weakness.”
Featured image of Dall.E, chart from TradingView.com
